**Edited** after feedback from @German Nikolishin below. It seems this transfer is the cost associated with storing data in the contract. The value inside the transfer is sent to what I presume is the contract's [`deposit_account`](https://github.com/paritytech/substrate/blob/98f2e3451c9143278ec53c6718940aeabcd3b68a/frame/contracts/src/storage.rs#L53), which is why it isn't a contract itself. The value sent to the `deposit_account` is the storageDeposit > faucetWithStore response.storageDeposit { Charge: '480.0000 Unit' } The deposit stays in the deposit account until the contract is terminated, at which point the deposit account uses the funds to remove any storage associated with the contract and then sends the remaining funds back to the recipient. ``` ink::env::terminate_contract::<ink::env::DefaultEnvironment>(recipient); ``` I've created a [demo repo](https://github.com/prosopo/batching) to demonstrate the fees shown above. [1]: https://i.sstatic.net/VhJJz.png