How Does the Volatility of Transaction Fees Affect the Pool Operator’s Risk in FPPS?

In Full Pay-Per-Share (FPPS), the pool operator guarantees a payout that includes the expected transaction fees. If the actual transaction fees collected are highly volatile, the operator faces increased risk.

If actual fees are lower than expected, the operator must cover the shortfall. If actual fees are higher, the operator profits.

High fee volatility makes it harder to accurately estimate the expected value, increasing the operator's financial exposure and the variance of their own profitability.