# Network Fees / Gas Fee Explanation

Why are fees required? Network fees, often referred to as "Gas," are mandatory costs required to validate and process transactions on the blockchain.

It is important to note that Cwallet does not collect or profit from these fees. They are paid directly to the blockchain.

The fee rates are not fixed, they fluctuate based on real-time network demand. During periods of high blockchain congestion, fees will naturally increase to ensure transaction priority.

<mark style="color:green;">**⚠️ NOTE:**</mark> Network fees apply exclusively to external withdrawals (on-chain transactions). All internal transfers between Cwallet accounts are processed off-chain and are therefore strictly fee-free.


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