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Additional Configurations for Deposit Addresses and Withdrawal Payor Fees

November 30th, 2022

Release Date

Wednesday, November 30, 2022

Release Type

Informational – No action or changes necessary from platforms.

Summary

Zero Hash is excited to launch flexible fee payment configurations for platforms enabling on-chain withdrawals and provisioning crypto deposit addresses. This feature allows the platform to select the currency and entity that pays the blockchain network fee associated with the on-chain action where applicable. These payment configurations are:

  • Platform - Crypto: Network fees are covered from the Platform’s reserves for the applicable network fee asset. This has been the default method when withdrawal and deposit functionality is enabled.
  • Platform - Fiat: Network fees are covered from the Platform’s fiat reserves for the network fee fiat equivalent. This has been the default method when deposit address functionality is enabled.
  • Participant (end-customer) - Crypto Additive: Network fees are covered from the participant crypto balances. When processing withdrawals, network fees are added to the requested withdrawal amount.
  • Participant (end-customer) - Crypto Netted: Network fees are denominated in the asset being withdrawn. Network fees are deducted from the requested withdrawal amount.

Action Required

If platforms have deposit address functionality enabled and are satisfied with their current setup, then no action is required. If platforms do not yet have the functionality to create deposit addresses enabled and wish to do so, then they should reach out to their account team and choose the preferred configuration.

Platforms paying for deposit address creation now have additional options to change the way deposit address creation fees are assessed.

Endpoints Impacted

Deposit Address Creation

When a Participant requests a deposit address to be created, the Platform calls POST /deposits/digital_asset_addresses to create a new digital wallet deposit address for the [asset] and [participant_code] provided.

Sample Request

{
   "participant_code": "CUST01",
   "asset": "UNI"
}

Sample Response

{
   "message": {
   "created_at": 1647050013,
   "address": "0x7f41A26C0CB9D5a1e57BE9cF10F8354b77CD8ab3",
   "participant_code": "CUST01",
   "asset": "UNI"
}

Configuration 1: Platform pays in crypto (Default)

The default configuration when enabling deposit addresses is for the Platform to pay for deposit address creation fees in crypto. Zero Hash pays the network fee to create the deposit address, assigns the deposit address to the participant, and deducts the crypto from the platform’s crypto wallet.

Configuration 2: Platform pays in fiat (NEW)

Platforms can still pay for the deposit address creation however choose to deduct fiat. Zero Hash pays the network fee to create the deposit address, assigns the deposit address to the participant, and deducts from the platform’s float account.

Configuration 3: Participant pays in crypto (NEW)

Another newly created configuration option is for Platforms to pass responsibility for the deposit address creation fees to the end user. Zero Hash pays the network fee to create the deposit address, assigns the deposit address to the participant, and deducts the fee from the participant’s crypto account for the chosen asset.

Withdrawals

When using the new Fee Payor configuration for withdrawals (Participant (end-customer) - Crypto Netted), Platforms can now use the new withdrawal endpoints that are used to generate and execute the withdrawal locked network fee quote.

Affected Endpoints:

  • GET /withdrawals/locked_network_fee
  • POST /withdrawals/execute

To read more about the new withdrawals configuration and endpoint implementation see the article titled “2022-12-15: Netted Withdrawals” under the “Relevant Documentation” section of these release notes.