What Are the Fee-Bumping Rules (E.g. Minimum Fee Increase) for a BIP125 RBF Replacement?
BIP125, the Opt-in RBF standard, specifies two primary fee-bumping rules for a replacement transaction. First, the replacement transaction's total absolute fee must be greater than the original transaction's fee plus the fee required to cover the new transaction's size.
Second, the replacement must pay a higher fee rate (sat/vbyte) than the original. This ensures the replacement is always more economically attractive to miners and prevents spamming the network with marginally higher-fee transactions.
Glossar
RBF
Policy ⎊ RBF (Replace-by-Fee) is a protocol feature that allows a user to replace an unconfirmed transaction in the mempool with a new transaction that includes a higher transaction fee.
Rules
Framework ⎊ The operational guidelines governing cryptocurrency derivatives, options trading, and related financial instruments establish a layered system of protocols designed to ensure market integrity and participant protection.
Fee Rate
Calculation ⎊ Fee rate determination within cryptocurrency derivatives, options, and financial derivatives contexts involves quantifying the cost associated with executing a trade or maintaining a position, typically expressed as a percentage of the notional value or premium.
Higher Fee Rate
Rate ⎊ The designation "Higher Fee Rate" within cryptocurrency derivatives, options trading, and related financial instruments denotes a tiered pricing structure where transaction costs escalate based on factors such as trading volume, contract size, or asset class.
Fee Increase
Impact ⎊ Fee increases within cryptocurrency derivatives markets represent a direct alteration to the cost structure of trading, influencing both liquidity provision and hedging strategies.
Fee
Charge ⎊ A fee within cryptocurrency, options, and derivatives represents a cost associated with executing a trade, accessing a platform, or maintaining a position, directly impacting net profitability and requiring precise quantification for strategy backtesting.