Update 03-calculate-aep-fees.mdx #2257

gmehta2 · 2025-04-24T19:02:09Z

added in David G's calculation's here https://docs.google.com/document/d/1uAYpMJ02gqBmQxKfyQkR1uWyGj9w2os56pGYKJRzrNE/edit?tab=t.0

vercel · 2025-04-24T19:02:14Z

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.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

TucksonDev

Thanks @gmehta2 !
I've requested some more clarifications in some of the points 🙏

TucksonDev · 2025-04-28T10:06:50Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+If AEP fees are paid in ETH:
+
+AEP_FEES = [
+  (L2BaseFee * Daily_price_L2_gas_token_to_ETH) +


I'm still a bit concerned about using "daily price" here. The price of an asset can vary a lot within a given day. I'd say we should either modify the language to not use "daily price" and/or include an explanation on how this price is expected to be obtained.

agreed, working with David to define this

TucksonDev · 2025-04-28T10:08:07Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+] * 0.1
+
+Apechain Example:
+L2BaseFee + L2SurplusFee: Summed from feeCollection traces excluding transfers to the system address (denominated in the Orbit’s gas token, example $APE).


I think "system address" it's not mentioned anywhere else in the docs. Should we add an explanation to what that is? (also, I'm not sure what it is referring to)

agreed, will find out here

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

gmehta2

updated with feedback

remove l1base fee everywhere
defined some terms further

TucksonDev

Flagging some formatting errors. Also, there are 2 pending comments here:

About the "daily price" (here)
Mention to a "system address" (here)

TucksonDev · 2025-05-07T10:08:26Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

@@ -14,14 +14,48 @@ Before we define “Protocol Net Revenue”, let's explain how fees work in a st

 ### Sequencing revenue

-In a vanilla Orbit chain (a chain without customizations, transaction ordering policies, or other add-ons), users and dApps will pay a single gas fee to submit their transactions. Under the hood, however, a user’s fee is allocated across four components used by the network in different ways. These four fee components are split as follows:
+In a vanilla Orbit chain (a chain without customizations, transaction ordering policies, or other add-ons), users and dApps will pay a single gas fee to submit their transactions. Under the hood, however, a user’s fee is allocated across three components used by the network in different ways. These three fee components are split as follows:


Suggested change

In a vanilla Orbit chain (a chain without customizations, transaction ordering policies, or other add-ons), users and dApps will pay a single gas fee to submit their transactions. Under the hood, however, a user’s fee is allocated across three components used by the network in different ways. These three fee components are split as follows:

In a vanilla Orbit chain (a chain without customizations, transaction ordering policies, or other add-ons), users and dApps will pay a single gas fee to submit their transactions. Under the hood, however, a user’s fee is allocated across four components used by the network in different ways. These three four components are split as follows:

We describe here how the fee collecting system works outside the context of AEP fees. So it makes sense to mention the 4 fee components.

Think we can change back to 3 if we remove the l1basefee

TucksonDev · 2025-05-07T10:08:52Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx


 - `l2BaseFee`: fees paid to execute a transaction on the Orbit chain.
 - `l2SurplusFee`: surplus fees are charged in addition to the base fee when an Orbit chain is congested.
- `l1BaseFee`: fees paid to cover the cost of an Orbit chain posting its settlement transaction to the parent chain.


If we mention the 4 components above (based on my previous comment), we should keep this one there too.

Harry mentioned to delete this everywhere because it nets to 0 @hkalodner

TucksonDev · 2025-05-07T10:09:42Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

 - `l1SurplusFee`: an additional surplus fee that can be configured to award extra fees to the batch poster.

-Based on the above, we interpret that an Orbit chain’s revenue sources include all fee components: `l2BaseFee`, `l2SurplusFee`, `l1BaseFee`, and `l1SurplusFee`. However, one of these fee components is also a cost, `l1BaseFee`, as it is used to pay for parent chain settlement.
+Based on the above, we interpret that an Orbit chain’s revenue sources include all fee components: `l2BaseFee`, `l2SurplusFee`, and `l1SurplusFee`.


And here we start describing the context of "revenue", so it makes sense to pivot to these 3. This bit is correct.

TucksonDev · 2025-05-07T10:11:50Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+AEP*FEES = [
+(L2BaseFee * Daily*price_L2_gas_token_to_ETH) +
+(L2SurplusFee * Daily_price_L2_gas_token_to_ETH) +
+(L1SurplusFee \* Daily_price_L1_gas_token_to_ETH)
+
+- (
+  (AssertionCosts _ Daily_price_L1_gas_token_to_ETH)
+  )
+  ] _ 0.1


nit: use codeblocks for these

TucksonDev · 2025-05-07T10:12:05Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+If AEP fees are paid in `ETH`:
+
+AEP*FEES = [
+(L2BaseFee * Daily*price_L2_gas_token_to_ETH) +


Suggested change

(L2BaseFee * Daily*price_L2_gas_token_to_ETH) +

(L2BaseFee * Daily_price_L2_gas_token_to_ETH) +

TucksonDev · 2025-05-07T10:12:42Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+AEP_FEES = [
+(L2BaseFee) +
+(L2SurplusFee) +
+(L1SurplusFee \* Daily_price_L1_to_L2_gas)


Suggested change

(L1SurplusFee \* Daily_price_L1_to_L2_gas)

(L1SurplusFee * Daily_price_L1_to_L2_gas)

TucksonDev · 2025-05-07T10:12:51Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+(L1SurplusFee \* Daily_price_L1_to_L2_gas)
+
+- (
+  (AssertionCosts _ Daily_price_L1_to_L2_gas)


Suggested change

(AssertionCosts _ Daily_price_L1_to_L2_gas)

(AssertionCosts * Daily_price_L1_to_L2_gas)

TucksonDev · 2025-05-07T10:13:11Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+- (
+  (AssertionCosts _ Daily_price_L1_gas_token_to_ETH)
+  )
+  ] _ 0.1


Suggested change

] _ 0.1

] * 0.1

TucksonDev · 2025-05-07T10:13:20Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+- (
+  (AssertionCosts _ Daily_price_L1_to_L2_gas)
+  )
+  ] _ 0.1


Suggested change

] _ 0.1

] * 0.1

TucksonDev · 2025-05-07T10:14:24Z

.../02-configure-your-chain/advanced-configurations/03-aep-fee-router/03-calculate-aep-fees.mdx

+
+Assertion costs: Pulled from the `RollupProxy` via `nodeCreated` events and other validator-related transactions (also in `ETH`).
+
+To simplify this for developers and avoid discrepancies between chain operators and RaaS providers, we recommend using prebuilt SQL queries from Allium to extract each of these values consistently.


This text should be updated with the method we recommend for the accounting. If we want to change to the "fee splitter method", we should remove the mentions to using queries for Allium

Update 03-calculate-aep-fees.mdx

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TucksonDev mentioned this pull request Apr 30, 2025

AEP custom gas token formula #2219

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Update 03-calculate-aep-fees.mdx #2257

Update 03-calculate-aep-fees.mdx #2257

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	In a vanilla Orbit chain (a chain without customizations, transaction ordering policies, or other add-ons), users and dApps will pay a single gas fee to submit their transactions. Under the hood, however, a user’s fee is allocated across three components used by the network in different ways. These three fee components are split as follows:
	In a vanilla Orbit chain (a chain without customizations, transaction ordering policies, or other add-ons), users and dApps will pay a single gas fee to submit their transactions. Under the hood, however, a user’s fee is allocated across four components used by the network in different ways. These three four components are split as follows:

	(L2BaseFee * Daily*price_L2_gas_token_to_ETH) +
	(L2BaseFee * Daily_price_L2_gas_token_to_ETH) +

	(L1SurplusFee \* Daily_price_L1_to_L2_gas)
	(L1SurplusFee * Daily_price_L1_to_L2_gas)

	(AssertionCosts _ Daily_price_L1_to_L2_gas)
	(AssertionCosts * Daily_price_L1_to_L2_gas)


		Assertion costs: Pulled from the `RollupProxy` via `nodeCreated` events and other validator-related transactions (also in `ETH`).

		To simplify this for developers and avoid discrepancies between chain operators and RaaS providers, we recommend using prebuilt SQL queries from Allium to extract each of these values consistently.

Update 03-calculate-aep-fees.mdx #2257

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Update 03-calculate-aep-fees.mdx #2257

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