# Transaction Fees

Transaction Fees are any funds provided by the client when submitting a transaction to be included in a block.

### Base Fee

The Base Fee is defined as the amount of XL1 that needs to be provided for a transaction to enter the pending transaction pool. If the transaction passes the initial signature check, the Base Fee is burned as part of the blockchain’s standard operation. In the case that the transaction fails protocol validation, the actor who is being asked to accept the transaction may claim the Base Fee by wrapping the invalid transaction in a Claim Transaction.

### Gas Fee

The Gas Fee is defined as the amount of XL1 that is provided to cover the cost of processing and including the transaction by the block producer. This is variable based on the size of the transaction (including elevated payloads) and the scripts processed during block building. If the gas is insufficient to cover the calculated cost, then it is not included in the blockchain. **100% of this fee may be transferred to the producer's address of choice**, which in most cases is their own address.

### Priority Fee

The Priority Fee is defined as the amount of XL1 that is granted to the block producer to raise the priority of the transaction. To determine the priority score, the priority amount is divided by the gas amount. When the transaction is included in a block, **100% of this fee may be transferred to the producer's address of choice**.


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