Channel Rebalancing "Fee Ratio"

Bitcoin and Lightning
1

Greetings.

On LNDg App - Channel Rebalancing, what is the point in the “Fee Ratio” column besides the need to keep it smaller than MaxCost% ?

Is there any ideal value that should be displayed in this column?

Can we conclude that Higher values mean lower profitability?

Thank you!

2

It indicates the ratio of your fees (what you charge to forward payments to Peer A) versu what Peer A charges to forward payments to you. Lets say:

  • you charge Base=0 and Rate=100
  • Peer A charges Base=0 and Rate =1000
  • the Fee Ratio would be 1000% i.e. Peer A charges 10 times more than you do
  • rebalancing that channel would be a loss making affair since you pay more to receive from that peer than you make sending through that peer

I hope this helps a bit.

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