Replace-By-Fee Protocol

The Replace-By-Fee protocol is a standard mechanism that allows a user to update a pending transaction by broadcasting a new version with a higher fee. This is a critical safety feature for users whose transactions are stuck due to unexpected fee spikes.

By paying more, the user essentially signals to the network that they want to override the previous, slower transaction. This protocol is widely supported by modern wallets and is essential for maintaining liquidity and agility in fast-moving financial markets.

It enables traders to react to price changes even if their initial trade is still waiting in the mempool.