Lido Minute

Why a 0.5 ADA Fee Needs 0.75 ADA: collateral_percent

6 min · 23. feb. 2026
episode Why a 0.5 ADA Fee Needs 0.75 ADA: collateral_percent cover

Description

Ever notice your wallet asking for more ADA than the actual transaction fee? You’re not actually being charged extra.... so what is it? In this episode, let's check out collateral_percent, the parameter that requires temporary ADA “insurance” for smart contract transactions. It’s not a penalty. It’s protection, and it helps keep Cardano secure and spam-resistant.

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