Royalty Calculation

In general, it is assumed that there are costs associated with licensing transaction data services through payment communication channels. The fully absorbed costs relate to expenditures for the maintenance of payment channels, including the capital cost for inbound capacity in sat and cost of capital in PL2, LN transaction fees, the gas fees in ETH, the expenses for hardware and software, other overhead, and the net margin of the Lightning Node.

Ultimately, these costs are covered by the LM. Consequently, licensors must add their net margin when licensing inbound capacity through the capacity market. The recommended net margin to be included in the Royalties is +20% in addition to the primary costs. Liquidity Makers may perform their price calculation independently and set the licensing fees in PL2 at their own discretion.