Gas on Arbitrum: What a P2P Trade Actually Costs
On Arbitrum, the gas to run a P2P trade is small — typically a fraction of a dollar per on-chain action, not the multi-dollar fees of Ethereum L1. You pay gas in ETH for each on-chain step (funding, confirming, settling), but because Arbitrum is a Layer 2, each step costs cents rather than dollars, so a complete trade's gas is usually negligible next to the value being traded. That low, predictable cost is what makes on-chain escrow practical for everyday amounts. For exact protocol fees beyond gas, always check the live fees page rather than any number quoted in an article.
Gas vs protocol fees — two different things
First, separate two costs people conflate:
- Gas — paid to the network (in ETH) to execute a transaction. This goes to the chain, not the platform, and is what this article covers.
- Protocol fees — what the platform charges for the service (e.g. a listing fee or commission). These are set by the protocol; current values live on the fees page.
Gas is a property of the chain; protocol fees are a property of the platform. A non-custodial platform can't make gas zero — that's the network's cost — but running on Arbitrum keeps it tiny.
Which steps cost gas
| Step | Costs gas? | Notes |
|---|---|---|
| Creating a passkey account | No on-chain cost at signup | Account deploys lazily on first action |
| Funding a trade (locking escrow) | Yes | One on-chain action |
| Confirming payment received | Yes | One on-chain action |
| Settlement | Yes | Often bundled efficiently |
| Opening a dispute | Yes + filing fee | Only if a dispute occurs |
| Browsing offers | No | Reading the chain is free |
Note that no-sign-up passkey accounts cost nothing to create — the account deploys itself on your first real action, so you don't pay gas just to exist. Reading the market is free; you only pay when you write to the chain.
Why it's a fraction of L1
Arbitrum is a Layer 2: it batches and executes transactions off the main chain, then posts results to Ethereum, which spreads the expensive L1 cost across many transactions. The result is per-action fees a small fraction of doing the same thing on L1, while still inheriting L1's security. For escrow — which is several on-chain actions per trade — this is the difference between affordable and absurd.
You pay gas in ETH, not USDT
A practical point that trips up newcomers: gas on Arbitrum is paid in ETH, even when you're trading USDT. So you need a small amount of ETH in your account to cover the on-chain actions — this is why getting started on Arbitrum includes funding your account with a little ETH for gas alongside the USDT you'll trade. The amount needed is small, but it must be ETH; you can't pay gas in USDT directly.
How it compares to custodial exchange fees
A custodial exchange often advertises "low" or "zero" trading fees, but the real comparison includes what you give up: custody of your funds, your identity via KYC, and exposure to account freezes. On-chain, you pay small, transparent gas and a clearly-stated protocol fee, and in return keep custody and avoid the identity dossier. It's not strictly cheaper or pricier in every case — it's a different deal, where the cost is explicit and on-chain rather than paid in custody and data.
Bottom line
A P2P trade on Arbitrum costs gas only on the steps that write to the chain — funding, confirming, settling — and on a Layer 2 each of those is cents, paid in ETH, so a full trade's gas is usually trivial next to the trade value. Account creation and browsing are free; you need a little ETH on hand for gas; and protocol fees are separate and listed on the fees page. The low, transparent on-chain cost is exactly what makes non-custodial escrow viable for normal trade sizes.
FAQ
How much gas does a P2P trade cost on Arbitrum?
Typically a fraction of a dollar per on-chain action (funding, confirming, settling), so a complete trade's gas is usually negligible compared to the value traded — far less than the multi-dollar fees of Ethereum L1. Exact amounts vary with network conditions, and protocol fees are separate; check the live fees page for those.
Do I pay gas in USDT or ETH?
In ETH, even when trading USDT. Gas on Arbitrum is paid in the network's native ETH, so you need a small amount of ETH in your account to cover on-chain actions, alongside the USDT you're trading. You can't pay gas directly in USDT, which is why getting started includes funding a little ETH for fees.
Is gas the only cost of a P2P trade?
No — gas is the network cost (paid in ETH to the chain), and it's separate from protocol fees the platform charges for the service, like a listing fee or commission. Gas is set by the chain; protocol fees are set by the protocol and listed on the fees page. Both are transparent and on-chain, unlike custody and data costs on custodial desks.
Does it cost gas just to create an account or browse offers?
No. Passkey accounts deploy lazily — creating one costs nothing at signup, and the account deploys itself on your first real on-chain action. Reading the chain, including browsing offers, is also free. You only pay gas when you write to the chain, such as funding a trade or confirming a payment.
Try it: Inveil is non-custodial P2P USDT trading on Arbitrum — no KYC, no email, no seed phrase. Funds sit in smart-contract escrow, disputes settle on chain. Browse the market.