Fees

Fees

THE FEE MODEL IS CHANGING IN THE LATEST VERSION (V3) OF THE API.

Please refer to this guide to learn more about maker taker fees when you plan your migration to the upgraded v3 endpoints.

Fees are additional amounts that a user pays on top of a base price of an asset. These can be imposed by various entities. On XpansionChain, they are:

Entity	Type of fee	Amount	Example**
XpansionChain	Protocol	2% of every trade.	Alice lists an NFT for 1 ETH on a marketplace. When Bob purchases this NFT, he would need to pay 1.02 ETH where 1 ETH goes to Alice and 0.02 ETH goes to XpansionChain.
Application enabling the creation of an order, ie. marketplace	Maker marketplace	See rules below. When the create order endpoint is called, the caller (usually the marketplace facilitating the creation of the order) can set a fee amount and recipient in the request payload. This amount is added on top of the order price and paid by the user purchasing the asset.	Alice wishes to receive 0.99 ETH for her NFT assets and lists it on a marketplace that imposes a maker fee of 1%. Therefore, the price that the asset will be listed for on the marketplace is 1 ETH.
Application enabling filling of an order (trade), ie. marketplace	Taker marketplace	See rules below. When the create order endpoint is called, the caller (usually the marketplace facilitating the creation of the trade) can set a fee amount and recipient in the request payload. This amount is added on top of the order price and paid by the user purchasing the asset.	Alice wishes to receive 1 ETH for her NFT assets and lists it on a marketplace. Bob wishes to buy the asset from a different marketplace that imposes a taker fee of 1% and will therefore be presented with a buying price of 1.01 ETH inclusive of the taker marketplace fee.
Collection royalty recipient, ie. owner of an NFT smart contract	Royalty	See rules below. When minting an asset on XpansionChain, the contract owner can set a royalty rate and recipient either collection-wide (for all tokens in the collection), or per token. When the asset is sold on an XpansionChain marketplace, the royalty amount will be added to the price of the asset, to be paid by the purchaser. See also:Deep dive into ro'royalties .	Alice mints a collection of assets on XpansionChain and sets a 5% royalty for every asset in the collection to go to her. Bob owns an asset from Alice's collection and sets the sale price of 1 ETH. The marketplace on which he lists the asset will display a selling price of 1.05 ETH inclusive of the royalty amount. When Ciaran comes along and buys this asset, he pays 1.05 ETH, 1 ETH of which goes to Bob, and 0.05 ETH goes to Alice.

**For the sake of simplicity, only the fee in question is demonstrated in each example.

An example of a standard marketplace transaction that involves all possible fees would be, Alice is interested in selling her NFT, and she wishes to receive 0.99 ETH for her asset. Because the marketplace where the asset is listed imposes a 1% maker marketplace fee, the listing price in the marketplace will be 1 ETH. The asset that Alice has listed also has a royalty fee of 1% set on it. Bob wishes to buy the asset from a different marketplace that imposes a 1% taker marketplace fee and is presented with a buying price of 1.04 ETH which includes the 1% royalty fee, 2% protocol fee (mandatory for all trades on XpansionChain) and 1% taker marketplace fee.

The below table shows the amount split,

Fee Type	Value in ETH
Buyer pays	1.04
Royalty	0.01
Protocol	0.02
Taker marketplace	0.01
Maker marketplace	0.01
Seller receives	0.99

When are fees paid out?​

In the legacy v1 endpoints, fees were paid by the asset purchaser and sent to the recipient accounts as part of the transaction - so as soon as a transaction is confirmed.

In the upgraded v3 endpoints, fees will be paid by both the asset seller and the asset purchaser. The asset seller will be responsible for paying the maker (or) taker marketplace fees depending on whether the trade was executed on a listing or a bid. The asset purchaser will be responsible to pay the protocol, royalty and the maker (or) taker marketplace fees depending on whether the trade was executed on a listing or a bid. Similar to the current behaviour, fees will be sent to the recipient accounts as part of the transaction - so as soon as a transaction is confirmed.

Rules for setting maker and taker fees​

Maker fees can be set by the application that is enabling the user to create an order (put an asset up for sale). Taker fees can be set by the application enabling the user to create a trade (purchase an item for sale).

• You cannot set more than 3 recipients

• You cannot set the same recipient more than once

• Individual percentage fees can’t be <= 0%

Rules for setting royalties​

• You can set up to 50 royalty recipients

• You cannot set the same recipient more than once

• The royalty percentage for a single user cannot exceed 100% (however, the combined percentage for all royalty recipients may exceed 100% - as this amount is calculated on top of the sale price)

• Individual percentage fees can’t be < 0%