Flexible Transaction Fee System

Introduction

Purpose

This document outlines the requirements for a flexible transaction fee system that enables the configuration of fees for various events in our application.

Scope

The system will provide administrators with the ability to define flexible fee structures based on transaction types, user segments, and specific use cases.

Objectives

• Enable seamless fee configuration to align with business strategies and user needs.
• Enhance user experience by offering personalized fee structures.

Overview

Description

The Flexible Transaction Fee System is pivotal in our application infrastructure, facilitating dynamic fee configurations to optimize user interactions.

Importance of Configurable Fee Structures

Flexible fee configurations allow us to adapt to market dynamics, incentivize desired behaviors, and differentiate our services.

Target Users and Audience

• Administrators: Admins for managing fee structures.
• End Users: Customers who will experience the fee structures during their interactions with the application.

Functional Requirements

3.1. Fee Configuration

Event Types

• Deposit
• Buy
• Swap
• Sell
• Send
• Withdraw

Configurable Fee Options

• Transaction Thresholds:

  • Waive charges on the first transaction.
  • Charge on subsequent transactions.
  • Waive charges on a specific number of initial transactions.
  • Charge after the specified number of transactions.

• User Segments:

  • Apply discounted fees for selected user segments (e.g., repeat users, inactive customers).
  • Configure fees for new customers.
  • Configure fees for customers who have remained inactive for a specified duration.

• Jurisdictions:

  • Configure fees based on different jurisdictions (LB, UAE, Indonesia, Global).
  • Allow toggling of fee configurations for each jurisdiction.

• Use Cases:

  • Create promotional campaigns with waived fees for new users.
  • Offer reduced fees for specific transaction types or amounts during limited-time promotions.
  • Implement tiered fee structures based on user activity levels or account balances.
  • Set custom fee configurations for partner integrations or white-label solutions.

• Duration-Based Fees:

  • Configure fees to apply for a certain duration (e.g., promotional periods, seasonal discounts).
  • Allow multiple event types to be selected simultaneously for fee configurations.

3.2. Advanced Configuration Options

• Discounted Fees:

  • Apply percentage-based or fixed-amount discounts on fees for specific user segments or transaction types.

• Activity-Based Fees:

  • Configure different fees for active vs. inactive users based on defined activity thresholds.

• Combination Fees:

  • Allow for complex configurations where multiple criteria (e.g., user segment, transaction type, duration, jurisdiction) are combined to determine the applicable fee.

Best Practice Scenarios

• Loyalty Rewards: Offer progressively lower fees for users who complete a certain number of transactions within a set timeframe.
• Retention Campaigns: Waive or discount fees for users identified as at risk of churn based on inactivity or reduced engagement.
• Volume Discounts: Implement lower fees for high-volume traders to encourage larger transaction sizes.
• Regional Pricing: Customize fees based on geographic regions (jurisdictions) to reflect local market conditions and competition.

Epic: Implement Flexible Transaction Fee System

Epic Description

As an administrator, I want to configure flexible transaction fees for various events, user segments, and jurisdictions, enabling dynamic fee structures to adapt to business strategies and user needs.

Acceptance Criteria

• The system allows configuration of fees for different transaction types (Deposit, Buy, Swap, Sell, Send, Withdraw).
• Administrators can set fee configurations based on user segments (e.g., new customers, inactive customers, high-volume traders).
• Administrators can set fee configurations based on jurisdictions (LB, UAE, Indonesia, Global).
• Fee configurations can include transaction thresholds (e.g., waive fees on the first three transactions).
• Fees can be configured for specific durations (e.g., promotional periods).
• Multiple event types can be selected simultaneously for fee configurations.
• Discounts can be applied to fees for specific user segments or transaction types.

Assumptions and Constraints

Assumptions

• Users will adhere to fee structures without exploiting loopholes or vulnerabilities.
• Adequate resources will be allocated for system development, testing, and maintenance.

Constraints

• Regulatory limitations may restrict certain fee configurations in specific jurisdictions or industries.

Risks and Mitigation Strategies

Risks

• Incorrect fee calculations leading to financial loss or user dissatisfaction.
• Security breaches compromising sensitive fee configuration data.

Mitigation Strategies

• Conduct thorough testing of fee calculation algorithms and scenarios to ensure accuracy and reliability.
• Implement encryption, access controls, and audit trails to protect fee configuration data from unauthorized access or tampering.

Technical Architecture

Components

• Backend: Fee management engine responsible for applying configured fee structures.
• Database: Stores fee configuration data and transaction history.