The Lumx platform offers two types of exchange rates for currency conversion: floating and locked rates. Each serves different use cases and provides specific benefits.

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Floating Exchange Rates

Floating rates provide real-time currency conversion rates that fluctuate based on current market conditions. The rate is calculated at the moment of the quote request and again at transaction execution.

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When to Use Floating Rates

  • Immediate transaction execution
  • Comfortable with rate fluctuations
  • Avoiding locking fees
  • Real-time rate discovery

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Key Characteristics

  • No rate guarantee
  • Market rate at execution time
  • Optional partner fee configuration
  • High flexibility

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Locked Exchange Rates

Locked rates provide a guaranteed conversion rate for a specific time window, offering rate certainty and protection against market fluctuations.

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When to Use Locked Rates

  • Need rate certainty before execution
  • Protection against adverse rate movements
  • Displaying exact conversion amounts to users
  • Multi-step approval processes

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Time Lock Options

  • 30 seconds: Quick confirmations, automated systems
  • 1 minute: Standard user interactions
  • 5 minutes: Complex approvals, multi-step processes

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Key Characteristics

  • Guaranteed rate for lock duration
  • Both source and target amounts required
  • One-time use per rate ID
  • Expires after time lock duration

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Comparison: Floating vs. Locked Rates

FeatureFloating RateLocked Rate
Rate GuaranteeNoYes (for specified duration)
Lock DurationN/A30s, 1m, or 5m
Amount SpecificationSource onlyBoth source and target
Best ForImmediate executionRate certainty needed
Rate ID RequiredNoYes
ExpirationNoYes
Setup RequiredOptional partnerFeeIdExchange rate must be locked first

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Fee Structure

Both rate types support transparent fee structures:

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Lumx Fees

  • Platform fees (percentage + flat amount)
  • Applied to all transactions
  • Calculated transparently in quotes

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Partner Fees

  • Custom fees via partnerFeeId
  • Optional configuration
  • Applied on top of Lumx fees

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Rate Benefits

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Floating Rate Benefits

  • Real-time market rates
  • No locking overhead
  • Flexible execution timing
  • Lower complexity

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Locked Rate Benefits

  • Rate Guarantee: Protected for lock duration
  • Fee Transparency: All fees calculated upfront
  • User Experience: Display exact amounts before commitment
  • Risk Management: Protection against volatility

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Important Considerations

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Rate Volatility

Floating rates change between quote and execution, while locked rates remain fixed during the lock window.

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Time Management

Locked rates must be used before expiration. Monitor the expiresAt timestamp for timely execution.

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One-Time Use

Each locked rate ID can only be used once. Create new locked rates for each transaction.