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Aviatrix uses two different techniques to build encrypted peering connection (tunnel). It depend whether Aviatrix HPE (High Performance Encryption) is enabled or not If HPE is enabled then AWS native peering is used and encrypted tunnel is built over the private network link Documented here: https://docs.aviatrix.com/HowTos/insane_mode.html#how-does-insane-mode-work For Insane Mode (HPE) between two gateways, between a Transit GW and a Spoke gateway, or between two Transit GWs (Transit Peering), the Aviatrix Controller automatically creates the underlying AWS Peering connection and builds the tunnels over it It means 1 cents per GB for send and receive (that is 2 cents per GB) If HPE is not enabled, then AWS-IGW is used to build the encrypted tunnel