# Fee Distribution¶

The Fee Distribution dialog (`Lightning > Forwarding History > Fee Distribution`

):

discretizes routing events to

`10k sats`

calculates frequencies and probabilities

calculates normalized frequencies and probabilities (gaussian distribution)

graphs the probabilities

## Discretization¶

Discretization means the node’s historical routing events are all converted to `10k sat`

routing events. So a 100k routing event would get converted into `10x 10k`

routing events. This is to get a stronger signal from our routing data.

## Utility¶

The highest probability fee should be the preferred fee that is used on the channel. The higher the PPM the better (a PPM of 0 would tend to get the highest routing frequency, but that’s not useful in terms of making sats).

In this particular example, we can see that `ln.nicehash.com`

has historically routed the most at `150 PPM`

. This is the fee that should be set when the channel’s ratio tends to the node’s global ratio.

## Interpretations¶

A smooth curve with many points suggests the channel has a good fee setting algorithm, and that routing event fee distributions are highly predictable based on fees.

Ideally you’ll want the curve to be a traditional bell-shape, with the head of the bell curve aligned with the node’s global ratio.

An erratic curve suggests an unpredictable relationship between fees and routing.

A very simple curve (e.g a line) suggests the channel only has a few different fees set.