💰 Fees and Charges

When using the AUDD product suite, fees and charges may apply depending on your integration. Exact costs are outlined in your service agreement and are based on several operational and commercial factors, including:

• Services engaged
• Transaction volumes and frequency
• Business risk profile

🧾 Service Fees

Service fees are the direct charges applied when your business uses AUDD products or services. While specific costs vary by commercial arrangement, common fees include:

• AUD Deposit fees
• AUD Withdrawal fees
• KYC/KYB fees (for Gateway integrations)

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Always Free:

Minting and burning AUDD is always fee-free. This process is 1:1 with the AUD balance available.

For deposit and withdrawal fees, these charges cover critical operational costs such as:

• Account opening and maintenance for virtual accounts
• Payment receipt and transfer costs
• On-chain costs (including minting/burning AUDD)
• Payment investigations and recalls
• Fiat transaction monitoring

For Gateway clients, KYC/KYB fees also cover enhanced compliance monitoring and reporting in line with AUSTRAC’s customer identification requirements.

⚙️ How Fees Are Charged

Transaction-based fees operate on a pay-as-you-go (PAYG) model.

For deposits, the fee is deducted at the time of receipt. For example:

• Deposit: $10,000
• Fee (0.1%): $10
• Available balance: $9,990

The available balance can then be minted as AUDD.

For withdrawals, the fee is added to the requested withdrawal amount. For instance:

• Requested withdrawal: $10,000
• Fee (0.1%): $10
• Total balance required: $10,010

In this case, it is important that you send the right amount of AUDD (10,010 AUDD) to be burned prior to initiating the withdrawal request - If the balance does not include the fee, the withdrawal will fail.

From a business perspective, you should carefully consider how to manage these fees in your operations. One approach is to maintain an AUDD buffer to cover fee deductions so customer balances remain unaffected. Alternatively, you may choose to pass the fee directly onto customers as part of your commercial model.

🌐 External Costs

External costs are not part of standard AUDD services but may apply in specific use cases. Where the costs originate within the AUDD product environment, these are confirmed with you before engagement, or being charged, where possible.

⛓️ On-Chain Costs

Outside of minting and burning (which is covered by the AUDD Mint), businesses are responsible for transaction costs incurred on external blockchain wallets. These fees are paid for by the wallet holder in the chain's native token (i.e: ETH for Ethereum, XLM for Stellar, XRP for XRP Ledger, etc.). While costs can vary by chain and use case, a common scenario of how these fees may arise is when managing different types of custody structures. For example:

• Omnibus wallet on Stellar: ~$20 in Lumens for setup, with negligible ongoing transaction costs (<$0.01 per transaction).
• Segregated custody on Ethereum: $250–$500 per month, depending on gas fees, transaction frequency, and sweeping operations.

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Operation Segregation:

While the on-chain operation of burning AUDD is covered by the AUDD Mint, sending AUDD from an external wallet to the AUDD Mint to initiate the burning process incurs a standard on-chain transaction fee, paid for by the wallet holder.

💳 Non-Standard Payment Costs

SWIFT and RTGS payments are not standard payment types supported within our service (thus covered by your standard service fee schedule). If used, any costs charged by our banking provider are passed through to you at cost. These typically range from $40–$60 per transaction, and are subject to FX and provider costs.

To ensure transparency, we will confirm all costs with you and, where possible, seek your approval before a payment is accepted or initiated. This ensures your business is fully aware of the external costs incurred and can plan accordingly.

Payments are always received or sent as AUD. If your bank does not support AUD, additional FX fees may apply. For example, in the scenario where a business sends a payment via SWIFT in USD to our bank:

• Payment sent: The business initiates a transfer of US$10,000.
  • Bank fee: Their bank deducts a fee of US$20, leaving US$9,980.
• Correspondent bank FX conversion: The US$9,980 is converted to AUD at the correspondent bank’s FX rate and spread, resulting in AU$15,390.
• Settlement fee: Our bank receives the AUD amount and charges a $45 settlement fee.
• Final amount received: AU$15,345 is available to the business after costs are deducted.

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The Stablecoin Proposition:

To reduce costs and avoid FX fees, consider engaging a liquidity partner to trade other stablecoins for AUDD directly instead of relying on SWIFT or RTGS transfers.