diff --git a/swap/src/bitcoin.rs b/swap/src/bitcoin.rs
index d2451e7d..c2f5e053 100644
--- a/swap/src/bitcoin.rs
+++ b/swap/src/bitcoin.rs
@@ -37,7 +37,9 @@ use serde::{Deserialize, Serialize};
 use sha2::Sha256;
 use std::str::FromStr;
 
+pub use crate::bitcoin::punish::ESTIMATED_WEIGHT as ESTIMATED_WEIGHT_TX_PUNISH;
 pub use crate::bitcoin::redeem::ESTIMATED_WEIGHT as ESTIMATED_WEIGHT_TX_REDEEM;
+pub use crate::bitcoin::refund::ESTIMATED_WEIGHT as ESTIMATED_WEIGHT_TX_REFUND;
 
 // TODO: Configurable tx-fee (note: parties have to agree prior to swapping)
 // Current reasoning:
diff --git a/swap/src/bitcoin/cancel.rs b/swap/src/bitcoin/cancel.rs
index d1d0bc43..31549408 100644
--- a/swap/src/bitcoin/cancel.rs
+++ b/swap/src/bitcoin/cancel.rs
@@ -216,6 +216,7 @@ impl TxCancel {
         &self,
         spend_address: &Address,
         sequence: Option<PunishTimelock>,
+        spending_fee: Amount,
     ) -> Transaction {
         let previous_output = self.as_outpoint();
 
@@ -227,7 +228,7 @@ impl TxCancel {
         };
 
         let tx_out = TxOut {
-            value: self.amount().as_sat() - TX_FEE,
+            value: self.amount().as_sat() - spending_fee.as_sat(),
             script_pubkey: spend_address.script_pubkey(),
         };
 
diff --git a/swap/src/bitcoin/lock.rs b/swap/src/bitcoin/lock.rs
index 8df6c263..58d3ff9d 100644
--- a/swap/src/bitcoin/lock.rs
+++ b/swap/src/bitcoin/lock.rs
@@ -136,6 +136,7 @@ impl TxLock {
         &self,
         spend_address: &Address,
         sequence: Option<u32>,
+        spending_fee: Amount,
     ) -> Transaction {
         let previous_output = self.as_outpoint();
 
@@ -147,7 +148,8 @@ impl TxLock {
         };
 
         let tx_out = TxOut {
-            value: self.inner.clone().extract_tx().output[self.lock_output_vout()].value - TX_FEE,
+            value: self.inner.clone().extract_tx().output[self.lock_output_vout()].value
+                - spending_fee.as_sat(),
             script_pubkey: spend_address.script_pubkey(),
         };
 
diff --git a/swap/src/bitcoin/punish.rs b/swap/src/bitcoin/punish.rs
index 4845429d..c698f07c 100644
--- a/swap/src/bitcoin/punish.rs
+++ b/swap/src/bitcoin/punish.rs
@@ -1,5 +1,5 @@
 use crate::bitcoin::wallet::Watchable;
-use crate::bitcoin::{self, Address, PunishTimelock, Transaction, TxCancel, Txid};
+use crate::bitcoin::{self, Address, Amount, PunishTimelock, Transaction, TxCancel, Txid};
 use ::bitcoin::util::bip143::SigHashCache;
 use ::bitcoin::{SigHash, SigHashType};
 use anyhow::{Context, Result};
@@ -7,6 +7,9 @@ use bdk::bitcoin::Script;
 use miniscript::{Descriptor, DescriptorTrait};
 use std::collections::HashMap;
 
+// TODO take real tx weight from past transaction
+pub const ESTIMATED_WEIGHT: usize = 10_000;
+
 #[derive(Debug)]
 pub struct TxPunish {
     inner: Transaction,
@@ -20,8 +23,10 @@ impl TxPunish {
         tx_cancel: &TxCancel,
         punish_address: &Address,
         punish_timelock: PunishTimelock,
+        spending_fee: Amount,
     ) -> Self {
-        let tx_punish = tx_cancel.build_spend_transaction(punish_address, Some(punish_timelock));
+        let tx_punish =
+            tx_cancel.build_spend_transaction(punish_address, Some(punish_timelock), spending_fee);
 
         let digest = SigHashCache::new(&tx_punish).signature_hash(
             0, // Only one input: cancel transaction
diff --git a/swap/src/bitcoin/refund.rs b/swap/src/bitcoin/refund.rs
index 34057c79..63d0818c 100644
--- a/swap/src/bitcoin/refund.rs
+++ b/swap/src/bitcoin/refund.rs
@@ -1,7 +1,7 @@
 use crate::bitcoin::wallet::Watchable;
 use crate::bitcoin::{
-    verify_sig, Address, EmptyWitnessStack, NoInputs, NotThreeWitnesses, PublicKey, TooManyInputs,
-    Transaction, TxCancel,
+    verify_sig, Address, Amount, EmptyWitnessStack, NoInputs, NotThreeWitnesses, PublicKey,
+    TooManyInputs, Transaction, TxCancel,
 };
 use crate::{bitcoin, monero};
 use ::bitcoin::util::bip143::SigHashCache;
@@ -11,6 +11,9 @@ use ecdsa_fun::Signature;
 use miniscript::{Descriptor, DescriptorTrait};
 use std::collections::HashMap;
 
+// TODO take real tx weight from past transaction
+pub const ESTIMATED_WEIGHT: usize = 10_000;
+
 #[derive(Debug)]
 pub struct TxRefund {
     inner: Transaction,
@@ -20,10 +23,10 @@ pub struct TxRefund {
 }
 
 impl TxRefund {
-    pub fn new(tx_cancel: &TxCancel, refund_address: &Address) -> Self {
-        let tx_punish = tx_cancel.build_spend_transaction(refund_address, None);
+    pub fn new(tx_cancel: &TxCancel, refund_address: &Address, spending_fee: Amount) -> Self {
+        let tx_refund = tx_cancel.build_spend_transaction(refund_address, None, spending_fee);
 
-        let digest = SigHashCache::new(&tx_punish).signature_hash(
+        let digest = SigHashCache::new(&tx_refund).signature_hash(
             0, // Only one input: cancel transaction
             &tx_cancel.output_descriptor.script_code(),
             tx_cancel.amount().as_sat(),
@@ -31,7 +34,7 @@ impl TxRefund {
         );
 
         Self {
-            inner: tx_punish,
+            inner: tx_refund,
             digest,
             cancel_output_descriptor: tx_cancel.output_descriptor.clone(),
             watch_script: refund_address.script_pubkey(),
diff --git a/swap/src/protocol.rs b/swap/src/protocol.rs
index b4dd148f..e37b4075 100644
--- a/swap/src/protocol.rs
+++ b/swap/src/protocol.rs
@@ -28,6 +28,8 @@ pub struct Message0 {
     dleq_proof_s_b: CrossCurveDLEQProof,
     v_b: monero::PrivateViewKey,
     refund_address: bitcoin::Address,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_refund_fee: bitcoin::Amount,
 }
 
 #[derive(Clone, Debug, Serialize, Deserialize)]
@@ -41,6 +43,8 @@ pub struct Message1 {
     punish_address: bitcoin::Address,
     #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
     tx_redeem_fee: bitcoin::Amount,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_punish_fee: bitcoin::Amount,
 }
 
 #[derive(Clone, Debug, Serialize, Deserialize)]
diff --git a/swap/src/protocol/alice/state.rs b/swap/src/protocol/alice/state.rs
index f4cbe979..4ee68202 100644
--- a/swap/src/protocol/alice/state.rs
+++ b/swap/src/protocol/alice/state.rs
@@ -1,6 +1,6 @@
 use crate::bitcoin::{
     current_epoch, CancelTimelock, ExpiredTimelocks, PunishTimelock, TxCancel, TxPunish, TxRefund,
-    ESTIMATED_WEIGHT_TX_REDEEM,
+    ESTIMATED_WEIGHT_TX_PUNISH, ESTIMATED_WEIGHT_TX_REDEEM,
 };
 use crate::env::Config;
 use crate::monero::wallet::{TransferRequest, WatchRequest};
@@ -110,6 +110,7 @@ pub struct State0 {
     redeem_address: bitcoin::Address,
     punish_address: bitcoin::Address,
     tx_redeem_fee: bitcoin::Amount,
+    tx_punish_fee: bitcoin::Amount,
 }
 
 impl State0 {
@@ -147,6 +148,7 @@ impl State0 {
             cancel_timelock: env_config.bitcoin_cancel_timelock,
             punish_timelock: env_config.bitcoin_punish_timelock,
             tx_redeem_fee: bitcoin_wallet.estimate_fee(ESTIMATED_WEIGHT_TX_REDEEM),
+            tx_punish_fee: bitcoin_wallet.estimate_fee(ESTIMATED_WEIGHT_TX_PUNISH),
         })
     }
 
@@ -187,6 +189,8 @@ impl State0 {
             redeem_address: self.redeem_address,
             punish_address: self.punish_address,
             tx_redeem_fee: self.tx_redeem_fee,
+            tx_punish_fee: self.tx_punish_fee,
+            tx_refund_fee: msg.tx_refund_fee,
         }))
     }
 }
@@ -211,6 +215,8 @@ pub struct State1 {
     redeem_address: bitcoin::Address,
     punish_address: bitcoin::Address,
     tx_redeem_fee: bitcoin::Amount,
+    tx_punish_fee: bitcoin::Amount,
+    tx_refund_fee: bitcoin::Amount,
 }
 
 impl State1 {
@@ -224,6 +230,7 @@ impl State1 {
             redeem_address: self.redeem_address.clone(),
             punish_address: self.punish_address.clone(),
             tx_redeem_fee: self.tx_redeem_fee,
+            tx_punish_fee: self.tx_punish_fee,
         }
     }
 
@@ -247,6 +254,8 @@ impl State1 {
             punish_address: self.punish_address,
             tx_lock,
             tx_redeem_fee: self.tx_redeem_fee,
+            tx_punish_fee: self.tx_punish_fee,
+            tx_refund_fee: self.tx_refund_fee,
         })
     }
 }
@@ -268,6 +277,8 @@ pub struct State2 {
     punish_address: bitcoin::Address,
     tx_lock: bitcoin::TxLock,
     tx_redeem_fee: bitcoin::Amount,
+    tx_punish_fee: bitcoin::Amount,
+    tx_refund_fee: bitcoin::Amount,
 }
 
 impl State2 {
@@ -275,7 +286,8 @@ impl State2 {
         let tx_cancel =
             bitcoin::TxCancel::new(&self.tx_lock, self.cancel_timelock, self.a.public(), self.B);
 
-        let tx_refund = bitcoin::TxRefund::new(&tx_cancel, &self.refund_address);
+        let tx_refund =
+            bitcoin::TxRefund::new(&tx_cancel, &self.refund_address, self.tx_refund_fee);
         // Alice encsigns the refund transaction(bitcoin) digest with Bob's monero
         // pubkey(S_b). The refund transaction spends the output of
         // tx_lock_bitcoin to Bob's refund address.
@@ -295,8 +307,12 @@ impl State2 {
             bitcoin::TxCancel::new(&self.tx_lock, self.cancel_timelock, self.a.public(), self.B);
         bitcoin::verify_sig(&self.B, &tx_cancel.digest(), &msg.tx_cancel_sig)
             .context("Failed to verify cancel transaction")?;
-        let tx_punish =
-            bitcoin::TxPunish::new(&tx_cancel, &self.punish_address, self.punish_timelock);
+        let tx_punish = bitcoin::TxPunish::new(
+            &tx_cancel,
+            &self.punish_address,
+            self.punish_timelock,
+            self.tx_punish_fee,
+        );
         bitcoin::verify_sig(&self.B, &tx_punish.digest(), &msg.tx_punish_sig)
             .context("Failed to verify punish transaction")?;
 
@@ -318,6 +334,8 @@ impl State2 {
             tx_punish_sig_bob: msg.tx_punish_sig,
             tx_cancel_sig_bob: msg.tx_cancel_sig,
             tx_redeem_fee: self.tx_redeem_fee,
+            tx_punish_fee: self.tx_punish_fee,
+            tx_refund_fee: self.tx_refund_fee,
         })
     }
 }
@@ -343,6 +361,10 @@ pub struct State3 {
     tx_cancel_sig_bob: bitcoin::Signature,
     #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
     tx_redeem_fee: bitcoin::Amount,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_punish_fee: bitcoin::Amount,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_refund_fee: bitcoin::Amount,
 }
 
 impl State3 {
@@ -399,7 +421,7 @@ impl State3 {
     }
 
     pub fn tx_refund(&self) -> TxRefund {
-        bitcoin::TxRefund::new(&self.tx_cancel(), &self.refund_address)
+        bitcoin::TxRefund::new(&self.tx_cancel(), &self.refund_address, self.tx_refund_fee)
     }
 
     pub fn extract_monero_private_key(
@@ -440,6 +462,7 @@ impl State3 {
             &self.tx_cancel(),
             &self.punish_address,
             self.punish_timelock,
+            self.tx_punish_fee,
         )
     }
 }
diff --git a/swap/src/protocol/bob/state.rs b/swap/src/protocol/bob/state.rs
index 453159d4..27387003 100644
--- a/swap/src/protocol/bob/state.rs
+++ b/swap/src/protocol/bob/state.rs
@@ -83,6 +83,7 @@ pub struct State0 {
     punish_timelock: PunishTimelock,
     refund_address: bitcoin::Address,
     min_monero_confirmations: u64,
+    tx_refund_fee: bitcoin::Amount,
 }
 
 impl State0 {
@@ -96,6 +97,7 @@ impl State0 {
         punish_timelock: PunishTimelock,
         refund_address: bitcoin::Address,
         min_monero_confirmations: u64,
+        tx_refund_fee: bitcoin::Amount,
     ) -> Self {
         let b = bitcoin::SecretKey::new_random(rng);
 
@@ -120,6 +122,7 @@ impl State0 {
             punish_timelock,
             refund_address,
             min_monero_confirmations,
+            tx_refund_fee,
         }
     }
 
@@ -132,6 +135,7 @@ impl State0 {
             dleq_proof_s_b: self.dleq_proof_s_b.clone(),
             v_b: self.v_b,
             refund_address: self.refund_address.clone(),
+            tx_refund_fee: self.tx_refund_fee,
         }
     }
 
@@ -170,6 +174,8 @@ impl State0 {
             tx_lock,
             min_monero_confirmations: self.min_monero_confirmations,
             tx_redeem_fee: msg.tx_redeem_fee,
+            tx_refund_fee: self.tx_refund_fee,
+            tx_punish_fee: msg.tx_punish_fee,
         })
     }
 }
@@ -191,6 +197,8 @@ pub struct State1 {
     tx_lock: bitcoin::TxLock,
     min_monero_confirmations: u64,
     tx_redeem_fee: bitcoin::Amount,
+    tx_refund_fee: bitcoin::Amount,
+    tx_punish_fee: bitcoin::Amount,
 }
 
 impl State1 {
@@ -202,7 +210,8 @@ impl State1 {
 
     pub fn receive(self, msg: Message3) -> Result<State2> {
         let tx_cancel = TxCancel::new(&self.tx_lock, self.cancel_timelock, self.A, self.b.public());
-        let tx_refund = bitcoin::TxRefund::new(&tx_cancel, &self.refund_address);
+        let tx_refund =
+            bitcoin::TxRefund::new(&tx_cancel, &self.refund_address, self.tx_refund_fee);
 
         bitcoin::verify_sig(&self.A, &tx_cancel.digest(), &msg.tx_cancel_sig)?;
         bitcoin::verify_encsig(
@@ -230,6 +239,8 @@ impl State1 {
             tx_refund_encsig: msg.tx_refund_encsig,
             min_monero_confirmations: self.min_monero_confirmations,
             tx_redeem_fee: self.tx_redeem_fee,
+            tx_refund_fee: self.tx_refund_fee,
+            tx_punish_fee: self.tx_punish_fee,
         })
     }
 }
@@ -254,14 +265,22 @@ pub struct State2 {
     min_monero_confirmations: u64,
     #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
     tx_redeem_fee: bitcoin::Amount,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_punish_fee: bitcoin::Amount,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_refund_fee: bitcoin::Amount,
 }
 
 impl State2 {
     pub fn next_message(&self) -> Message4 {
         let tx_cancel = TxCancel::new(&self.tx_lock, self.cancel_timelock, self.A, self.b.public());
         let tx_cancel_sig = self.b.sign(tx_cancel.digest());
-        let tx_punish =
-            bitcoin::TxPunish::new(&tx_cancel, &self.punish_address, self.punish_timelock);
+        let tx_punish = bitcoin::TxPunish::new(
+            &tx_cancel,
+            &self.punish_address,
+            self.punish_timelock,
+            self.tx_punish_fee,
+        );
         let tx_punish_sig = self.b.sign(tx_punish.digest());
 
         Message4 {
@@ -289,6 +308,7 @@ impl State2 {
                 tx_refund_encsig: self.tx_refund_encsig,
                 min_monero_confirmations: self.min_monero_confirmations,
                 tx_redeem_fee: self.tx_redeem_fee,
+                tx_refund_fee: self.tx_refund_fee,
             },
             self.tx_lock,
         ))
@@ -314,6 +334,8 @@ pub struct State3 {
     min_monero_confirmations: u64,
     #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
     tx_redeem_fee: bitcoin::Amount,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_refund_fee: bitcoin::Amount,
 }
 
 impl State3 {
@@ -347,6 +369,7 @@ impl State3 {
             tx_refund_encsig: self.tx_refund_encsig,
             monero_wallet_restore_blockheight,
             tx_redeem_fee: self.tx_redeem_fee,
+            tx_refund_fee: self.tx_refund_fee,
         }
     }
 
@@ -361,6 +384,7 @@ impl State3 {
             tx_lock: self.tx_lock.clone(),
             tx_cancel_sig_a: self.tx_cancel_sig_a.clone(),
             tx_refund_encsig: self.tx_refund_encsig.clone(),
+            tx_refund_fee: self.tx_refund_fee,
         }
     }
 
@@ -403,6 +427,8 @@ pub struct State4 {
     monero_wallet_restore_blockheight: BlockHeight,
     #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
     tx_redeem_fee: bitcoin::Amount,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    tx_refund_fee: bitcoin::Amount,
 }
 
 impl State4 {
@@ -467,6 +493,7 @@ impl State4 {
             tx_lock: self.tx_lock,
             tx_cancel_sig_a: self.tx_cancel_sig_a,
             tx_refund_encsig: self.tx_refund_encsig,
+            tx_refund_fee: self.tx_refund_fee,
         }
     }
 }
@@ -505,6 +532,8 @@ pub struct State6 {
     tx_lock: bitcoin::TxLock,
     tx_cancel_sig_a: Signature,
     tx_refund_encsig: bitcoin::EncryptedSignature,
+    #[serde(with = "::bitcoin::util::amount::serde::as_sat")]
+    pub tx_refund_fee: bitcoin::Amount,
 }
 
 impl State6 {
@@ -551,7 +580,8 @@ impl State6 {
     pub async fn refund_btc(&self, bitcoin_wallet: &bitcoin::Wallet) -> Result<()> {
         let tx_cancel =
             bitcoin::TxCancel::new(&self.tx_lock, self.cancel_timelock, self.A, self.b.public());
-        let tx_refund = bitcoin::TxRefund::new(&tx_cancel, &self.refund_address);
+        let tx_refund =
+            bitcoin::TxRefund::new(&tx_cancel, &self.refund_address, self.tx_refund_fee);
 
         let adaptor = Adaptor::<HashTranscript<Sha256>, Deterministic<Sha256>>::default();
 
diff --git a/swap/src/protocol/bob/swap.rs b/swap/src/protocol/bob/swap.rs
index 88ad040d..88a5a82f 100644
--- a/swap/src/protocol/bob/swap.rs
+++ b/swap/src/protocol/bob/swap.rs
@@ -66,6 +66,7 @@ async fn next_state(
     Ok(match state {
         BobState::Started { btc_amount } => {
             let bitcoin_refund_address = bitcoin_wallet.new_address().await?;
+            let tx_refund_fee = bitcoin_wallet.estimate_fee(bitcoin::ESTIMATED_WEIGHT_TX_REDEEM);
 
             let state2 = request_price_and_setup(
                 swap_id,
@@ -73,6 +74,7 @@ async fn next_state(
                 event_loop_handle,
                 env_config,
                 bitcoin_refund_address,
+                tx_refund_fee,
             )
             .await?;
 
@@ -268,6 +270,7 @@ pub async fn request_price_and_setup(
     event_loop_handle: &mut EventLoopHandle,
     env_config: &Config,
     bitcoin_refund_address: bitcoin::Address,
+    tx_refund_fee: bitcoin::Amount,
 ) -> Result<bob::state::State2> {
     let xmr = event_loop_handle.request_spot_price(btc).await?;
 
@@ -282,6 +285,7 @@ pub async fn request_price_and_setup(
         env_config.bitcoin_punish_timelock,
         bitcoin_refund_address,
         env_config.monero_finality_confirmations,
+        tx_refund_fee,
     );
 
     let state2 = event_loop_handle.execution_setup(state0).await?;
diff --git a/swap/tests/harness/bitcoind.rs b/swap/tests/harness/bitcoind.rs
index 91490f1a..dbe5787f 100644
--- a/swap/tests/harness/bitcoind.rs
+++ b/swap/tests/harness/bitcoind.rs
@@ -10,7 +10,7 @@ pub const DATADIR: &str = "/home/bdk";
 
 // Bitcoin regtest TX fee. The fee itself does not matter for our tests. It just
 // has to be static so that we can assert on the amounts.
-pub const TX_FEE: u64 = 10_000;
+pub const TX_FEE: u64 = 15_000;
 
 #[derive(Debug)]
 pub struct Bitcoind {
diff --git a/swap/tests/harness/mod.rs b/swap/tests/harness/mod.rs
index 3c9ae60d..c8a5d1d0 100644
--- a/swap/tests/harness/mod.rs
+++ b/swap/tests/harness/mod.rs
@@ -1,6 +1,7 @@
 mod bitcoind;
 mod electrs;
 
+use crate::harness::bitcoind::TX_FEE;
 use anyhow::{bail, Context, Result};
 use async_trait::async_trait;
 use bitcoin_harness::{BitcoindRpcApi, Client};
@@ -39,6 +40,8 @@ use uuid::Uuid;
 // bitcoin::ESTIMATED_WEIGHT_TX_REDEEM changes.
 // TODO: see if there is a better way.
 const TX_REDEEM_FEE: u64 = 12500;
+const TX_REFUND_FEE: u64 = 12500;
+const TX_CANCEL_FEE: u64 = TX_FEE;
 
 pub async fn setup_test<T, F, C>(_config: C, testfn: T)
 where
@@ -636,19 +639,13 @@ impl TestContext {
 
         let btc_balance_after_swap = self.bob_bitcoin_wallet.balance().await.unwrap();
 
-        let alice_submitted_cancel = btc_balance_after_swap
+        let bob_cancelled_and_refunded = btc_balance_after_swap
             == self.bob_starting_balances.btc
                 - lock_tx_bitcoin_fee
-                - bitcoin::Amount::from_sat(bitcoind::TX_FEE);
+                - bitcoin::Amount::from_sat(TX_CANCEL_FEE)
+                - bitcoin::Amount::from_sat(TX_REFUND_FEE);
 
-        let bob_submitted_cancel = btc_balance_after_swap
-            == self.bob_starting_balances.btc
-                - lock_tx_bitcoin_fee
-                - bitcoin::Amount::from_sat(2 * bitcoind::TX_FEE);
-
-        // The cancel tx can be submitted by both Alice and Bob.
-        // Since we cannot be sure who submitted it we have to assert accordingly
-        assert!(alice_submitted_cancel || bob_submitted_cancel);
+        assert!(bob_cancelled_and_refunded);
 
         assert_eventual_balance(
             self.bob_monero_wallet.as_ref(),