A Note on Gas and Fees

Transactions on the Hedge network need to include a transaction fee in order to be processed. This fee pays for the gas required to run the transaction. The formula is the following:

fees = ceil(gas * gasPrices)

The gas is dependent on the transaction. Different transaction require different amount of gas. The gas amount for a transaction is calculated as it is being processed, but there is a way to estimate it beforehand by using the auto value for the gas flag. Of course, this only gives an estimate. You can adjust this estimate with the flag --gas-adjustment (default 1.0) if you want to be sure you provide enough gas for the transaction. For the remainder of this tutorial, we will use a --gas-adjustment of 1.5.

The gasPrice is the price of each unit of gas. Each validator sets a min-gas-price value, and will only include transactions that have a gasPrice greater than their min-gas-price.

The transaction fees are the product of gas and gasPrice. As a user, you have to input 2 out of 3. The higher the gasPrice/fees, the higher the chance that your transaction will get included in a block.