diff --git a/bridge/standard/pkg/gwcontract/gateway.go b/bridge/standard/pkg/gwcontract/gateway.go
index 0a7a09db5..0e20b9699 100644
--- a/bridge/standard/pkg/gwcontract/gateway.go
+++ b/bridge/standard/pkg/gwcontract/gateway.go
@@ -19,6 +19,7 @@ type GatewayTransactor interface {
 		_recipient common.Address,
 		_amount *big.Int,
 		_counterpartyIdx *big.Int,
+		_finalizationFee *big.Int,
 	) (*types.Transaction, error)
 }
 
@@ -71,6 +72,7 @@ func (g *Gateway[EventType]) FinalizeTransfer(
 	recipient common.Address,
 	amount *big.Int,
 	counterpartyIdx *big.Int,
+	finalizationFee *big.Int,
 ) error {
 	switch settled, err := g.store.IsSettled(ctx, counterpartyIdx); {
 	case err != nil:
@@ -92,6 +94,7 @@ func (g *Gateway[EventType]) FinalizeTransfer(
 		recipient,
 		amount,
 		counterpartyIdx,
+		finalizationFee,
 	)
 	if err != nil {
 		g.logger.Error(
diff --git a/bridge/standard/pkg/gwcontract/gateway_test.go b/bridge/standard/pkg/gwcontract/gateway_test.go
index 6df1ec45a..71d8a5f8d 100644
--- a/bridge/standard/pkg/gwcontract/gateway_test.go
+++ b/bridge/standard/pkg/gwcontract/gateway_test.go
@@ -100,6 +100,7 @@ func (t *testGatewayTransactor) FinalizeTransfer(
 	recipient common.Address,
 	amount *big.Int,
 	counterpartyIdx *big.Int,
+	finalizationFee *big.Int,
 ) (*types.Transaction, error) {
 	newNonce := t.nonce
 	t.nonce++
@@ -143,22 +144,25 @@ func TestGateway(t *testing.T) {
 
 	transfers := []*l1gateway.L1gatewayTransferInitiated{
 		{
-			Sender:      common.HexToAddress("0x1234"),
-			Recipient:   common.HexToAddress("0x5678"),
-			Amount:      big.NewInt(100),
-			TransferIdx: big.NewInt(1),
+			Sender:                      common.HexToAddress("0x1234"),
+			Recipient:                   common.HexToAddress("0x5678"),
+			Amount:                      big.NewInt(100),
+			TransferIdx:                 big.NewInt(1),
+			CounterpartyFinalizationFee: big.NewInt(10),
 		},
 		{
-			Sender:      common.HexToAddress("0x5678"),
-			Recipient:   common.HexToAddress("0x1234"),
-			Amount:      big.NewInt(200),
-			TransferIdx: big.NewInt(2),
+			Sender:                      common.HexToAddress("0x5678"),
+			Recipient:                   common.HexToAddress("0x1234"),
+			Amount:                      big.NewInt(200),
+			TransferIdx:                 big.NewInt(2),
+			CounterpartyFinalizationFee: big.NewInt(20),
 		},
 		{
-			Sender:      common.HexToAddress("0x1234"),
-			Recipient:   common.HexToAddress("0x5678"),
-			Amount:      big.NewInt(300),
-			TransferIdx: big.NewInt(3),
+			Sender:                      common.HexToAddress("0x1234"),
+			Recipient:                   common.HexToAddress("0x5678"),
+			Amount:                      big.NewInt(300),
+			TransferIdx:                 big.NewInt(3),
+			CounterpartyFinalizationFee: big.NewInt(30),
 		},
 	}
 
@@ -208,6 +212,7 @@ func TestGateway(t *testing.T) {
 			transfer.Recipient,
 			transfer.Amount,
 			transfer.TransferIdx,
+			transfer.CounterpartyFinalizationFee,
 		); err != nil {
 			t.Fatal(err)
 		}
@@ -229,6 +234,7 @@ func TestGateway(t *testing.T) {
 		transfers[0].Recipient,
 		transfers[0].Amount,
 		transfers[0].TransferIdx,
+		transfers[0].CounterpartyFinalizationFee,
 	); err != nil {
 		t.Fatal(err)
 	}
@@ -241,6 +247,7 @@ func TestGateway(t *testing.T) {
 		common.HexToAddress("0x1234"),
 		big.NewInt(100),
 		big.NewInt(4),
+		big.NewInt(10),
 	); err == nil {
 		t.Fatal("expected error")
 	}
@@ -254,6 +261,7 @@ func publishTransfer(
 	event := brABI.Events["TransferInitiated"]
 	buf, err := event.Inputs.NonIndexed().Pack(
 		transfer.Amount,
+		transfer.CounterpartyFinalizationFee,
 	)
 	if err != nil {
 		return err
diff --git a/bridge/standard/pkg/relayer/relayer.go b/bridge/standard/pkg/relayer/relayer.go
index 8f87b6770..2a13da47e 100644
--- a/bridge/standard/pkg/relayer/relayer.go
+++ b/bridge/standard/pkg/relayer/relayer.go
@@ -14,12 +14,12 @@ import (
 
 type L1Gateway interface {
 	Subscribe(ctx context.Context) (<-chan *l1gateway.L1gatewayTransferInitiated, <-chan error)
-	FinalizeTransfer(ctx context.Context, recipient common.Address, amount *big.Int, transferIdx *big.Int) error
+	FinalizeTransfer(ctx context.Context, recipient common.Address, amount *big.Int, transferIdx *big.Int, finalizationFee *big.Int) error
 }
 
 type SettlementGateway interface {
 	Subscribe(ctx context.Context) (<-chan *settlementgateway.SettlementgatewayTransferInitiated, <-chan error)
-	FinalizeTransfer(ctx context.Context, recipient common.Address, amount *big.Int, transferIdx *big.Int) error
+	FinalizeTransfer(ctx context.Context, recipient common.Address, amount *big.Int, transferIdx *big.Int, finalizationFee *big.Int) error
 }
 
 type Relayer struct {
@@ -72,6 +72,7 @@ func (r *Relayer) Start(ctx context.Context) <-chan struct{} {
 					upd.Recipient,
 					upd.Amount,
 					upd.TransferIdx,
+					upd.CounterpartyFinalizationFee,
 				)
 				if err != nil {
 					r.logger.Error(
@@ -104,6 +105,7 @@ func (r *Relayer) Start(ctx context.Context) <-chan struct{} {
 					upd.Recipient,
 					upd.Amount,
 					upd.TransferIdx,
+					upd.CounterpartyFinalizationFee,
 				)
 				if err != nil {
 					r.logger.Error(