Channel Rebalancing "Fee Ratio"


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!

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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