April 28, 2022

A minimum amount is now required for withdrawals: why?

TelePay is a payments gateway, it works like a wallet, but it is not 100% a wallet, but more: our main work is to handle incoming payments, on which we charge 0 fees. We even manage internal transfers of tokens of any kind, without charging fees too.

Everything is OK with deposits and internal transfers. The problem arises when you need to withdraw funds back to the blockchain.

Since our launch, we've been following closely the blockchain fees associated with every withdrawal performed on the platform. For the Hive and HBD tokens (recently listed), the blockchain transfers cost us zero in the concept of blockchain fees. But, the TON blockchain charges fees to our liquidity pool when we need to send money from our platform, back to your personal wallet in the blockchain (a.k.a. withdrawal).

TON withdrawals with an amount > 0.2, costs us fees that we can cover with the processing fee. If we allow less than 0.2 TON for withdrawals, the processing fee (our fee) would not cover the blockchain fee, resulting on us losing money.

πŸ‘Œ In short

if the withdrawal amount < 0.2, we lose money and that's not OK for TelePay

if the withdrawal amount>= 0.2, we can cover the blockchain fee with our processing fee

That's why we have just introduced a minimum required amount for every withdrawal operation, to prevent us from losing money on paying blockchain fees we can't afford.

✨ Transparency

One of our core principles is transparency. As you can see, our wallets are public, like the TON wallet and Hive wallet. If you check on the first withdrawals from our TON wallet, you can see that many of them have a blockchain fee higher than the amount being transferred. Let's see some examples:

In this transaction, you can see that the amount being sent out of TelePay is 0.00228 TON, more specifically in the TONxAds bot, and the blockchain fee is 0.006090279 TON.

0.00228 TON < 0.006090279 TON

That's a negative balance of -0,003290279 TON. In just a few words: TelePay losing money. Here you can see a screenshot of our admin panel, where we list some of those withdrawals producing losses for us.

πŸ‘€ This is how we handle withdrawals now

When you withdraw via the dashboard, you'll see a label under the amount input, saying "minimum required", only if applicable. Other tokens will not have this minimum amount.

πŸ§‘β€πŸ’» Devs, action from your side is required

If you're a developer, you need to implement this logic on your app. For that, we released this new endpoint for you to consult the API, fetching the minimum amount for a given asset. The endpoint is called getWithdrawMinimum, and you can read the documentation here.

Possible use case: If you have users in your apps to which you need to send payouts, there could be a minimum withdrawal amount. Or, you have the option to transfer the funds internally to their TelePay account, which is free.

That's it, thanks for reading, we'll keep updating you on further decisions. See you on the road.

This article is brought to you by TelePay, a cryptocurrencies payments gateway, to help you handle payments in your business, in an easy, fast, and secure way. Sign up, add your merchants and get your personal guarded wallet with us.

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