Are ILP payment's free

General Questions
1

If server App is receiving money from client application using testnet, I see full funds being transfered without any fees. Is this the same in Live net as well?

If so, normally exchange charge a fee when transferring funds, how will this help ILP uplink servers cover it’s maintance cost? Wouldn’t it be costly! And if money are exchanged from xrp to eth, won’t there be charges even then?

2

Hi @adornala, anybody providing liquidity on the open network has the option to take a spread on the payments that pass through their connector. You are correct in that there are some inherent costs to operating a connector, so it is not economical to run a connector at scale if you are not monetizing in some form.

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3

Thanks @austin_king. Please excuse me if my perspective is wrong. From what I understand, my server can say hand me 100xrp for this premium content and if there are 10 connectors in between client and server,
Do connectors take xrp or server should distribute it?

If connectors can take a fraction of xrp that’s sent?

  1. Can server negotiate and debit client accordingly?
  2. Can Interledge maintain this acknowledgement between client and server so conditions won’t fail?
4

You would never actually directly pay the server unless you had a direct relationship to them in the network. In the case that there are 10 connectors in between your client and server, all of which you are connected to you would actually end up paying one of the connectors in between you and the server the 100 XRP by the end of the transaction. The connector would have also updated their balance with the server to forward along 100 XRP * (1 - the percentage spread they wish to take).

  1. There could be programmatic negotiation, but that would be logic implemented at the application layer, above the interledger layer.
  2. When the client and server establish a STREAM connection to transfer the money, they can agree upon a minimum slippage they want to ensure that the total percentage spread taken from the value transfer through the network does not exceed that amount, or else the stream will stop sending the money.
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