HashFlare Bitcoin Maintenance Fee Explained
When buying a Bitcoin cloud mining contract on websites like HashFlare, some contracts will have a daily maintenance fee. This means for every day you have the contract, you'll be charged this fee before you get any of your mining profits, similar to paying for electricity if you own a miner yourself.
This guide will go through how these maintenance fees work for HashFlare, how much they are, and how they compare with competitors like Genesis Mining.
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How much is the HashFlare Maintenance Fee?
On the HashFlare homepage under the 'PRICING' section, their available contracts are listed - and next to each contract is their daily maintenance fee. We'll focus on Bitcoin fees in this guide, but on this page you can see them for other contracts like Ethereum and ZCash too.
Currently the daily Bitcoin maintenance fee is $0.0035 per 10 GH/s of hashpower (this may change at any point, so it's good to go to this page and check the current fee). This means every 10 GH/s that you buy, you'll be charged this fee every day. If you were to buy 50 GH/s, you'd be charged $0.0035x5, which is $0.0175 per day. If you bought 10 TH/s, you'd be charged $0.0035x1000, which is $3.50 per day.
When buying larger amounts, this fee can get quite large - and scary! An easier way to visualise this is that the daily fee is always the same percentage regardless of how much you buy. Today for example on our test account we had to pay 17% of our mined coins in the daily fee. If we had 10 GH/s it would still be 17%, if we had 100 TH/s, it would again still be 17%.
The daily fee is a fixed amount in USD value. The coins you mine per day vary each day in both coin amount and USD value, so day-to-day the percentage this fee represents of your mined coins will vary by a few percent. Today our fee was 17% of our mined coins, yesterday it was 20%, the day before that it was 21%, etc. If Bitcoin's USD value drops, this fee will represent a larger percentage of your mined coins, as the daily fee is a fixed USD amount. If Bitcoin's value goes up, it will be a lower percentage. 3 days ago Bitcoin's value was lower than it is now, so the percentage has been decreasing for the past 3 days. If Bitcoin's value goes up significantly to say 5x its current value, the daily fee would become as low as 3-4% of your mined coins. HashFlare are able to change their daily fee at any point due to section 5 of their Terms of Service, although historically they've decreased it over time.
Comparing Daily Fees to Coins Mined
There are two main places for viewing mined coins each day, the 'BTC Balance' section of the Dashboard, and the History page. On the Dashboard 'BTC Balance' section, a chart displays your daily balance on a line chart, and your daily mined coins in an overlayed bar chart. This amount is deceptive. This is the amount of coins you mined before you've been charged your daily fee, so the amount added to your balance will be smaller than this.
To see the actual amount of Bitcoin you've received per day you need to go to the History page and scroll down to 'Log'. Here you may have various things like Referral bonuses and withdrawals, the relevant things are where it says 'SHA-256 maintenance (BTC)' and 'SHA-256 payout (BTC)' - you'll have 1 of these entries for each day.
The amount under payout is the same as the value displayed on the Dashboard bar chart. The maintenance amount is how much you've been charged that day. Both of these values take into account all active Bitcoin contracts (you may have entries for each contract type, you'd have 1 of each if you just had Bitcoin contracts).
At first, this looks to be very deceptive - where you need to do extra work to see how much you're actually earning, and we agree with this. But on Genesis Mining's website, although any displayed values already take into account fees - from what we can see they don't make it clear how much their daily fees actually are. They don't seem to display them anywhere like HashFlare does. So although HashFlare's approach is deceptive - at least you can see this daily fee, and work out exactly what percentage you're being charged per day.
How to predict daily profit?
Well with the above said, viewing your daily coins mined and fees should be easy! What's more difficult is predicting your daily profit in the future. There are two main approaches; either you work this our yourself (HashFlare posted a section under their FAQ explaining this well), or you can let us do it for you!
As well as posting these guides, we also develop tools for scenarios like this. One is a cloud mining calculator, which takes into account these daily fees and estimates future Bitcoin price and difficulty changes. Try it out here!
DISCLAIMER: This site cannot substitute for professional investment or financial advice, or independent factual verification. This guide is provided for general informational purposes only. Anything Crypto is UK-based and not regulated by the FCA (Financial Conduct Authority). The group of individuals writing these guides are cryptocurrency enthusiasts and investors, not financial advisors. The ideas presented are our analysis, learning & opinions on a range of cryptocurrency topics. Trading or mining any form of cryptocurrency is very high risk, so never invest money you can't afford to lose - you should be prepared to sustain a total loss of all invested money.
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Written by the Anything Crypto team
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