Translations:Fees And Profitability/77/en

The idea is that when you have liquidity at your local side, you charge low (but reasonable to make profit) fees. As liquidity moves away earning you fees, you start raising your fees. As a further extension, you can also set your fees high to stop routing through a channel where there is no liquidity. This is #9999BaseFee. If your channel has run out of liquidity on your end, the network does not realise this and continues to send you traffic if your fees are low. This causes "Temporary Channel Failure" on the network and not only creates delays but also affects your node reputation. By presenting a low fee channel with zero or close to zero liquidity you are affecting the network path finding. If you cannot provide the liquidity (via rebalance or other means), it is sensible to step out of the path finding paths which can be done by raising your fees.