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Hello and welcome to chapter four of the Create Configure and Sell NFT collections on ImmutableX course.
In this chapter we're going to talk about how to sell your NFTs and some of the implications of selling NFTs on ImmutableX.
It's hard to talk about selling NFTs on ImmutableX without first talking about the Global Order Book. If you recall from a previous lesson, we talked about how the Global Order Book
on ImmutableX provides a high level of capability to provide consistent listing information and buy and sell capabilities
across every marketplace in ImmutableX. The global order book via the ImmutableX API is how
you can list any of your NFTs to be sold or to purchase an NFT that is listed to be sold. You can perform this operation by either calling the API directly or
using one of the marketplaces that supports this capability.
An important topic to cover in relation to selling NFTs on ImmutableX are fees. As we've covered previously, ImmutableX
has a protocol fee of 2% that gets charged on every trade. In addition to this, there's a concept of maker
and taker fees. These are fees that are set by the marketplace or application that creates an order for something to be sold, and then fills
an order where an item is bought, respectively. Maker and taker fees allow marketplaces to have a sustainable
existence and charge fair and transparent fees for providing the functionality that they provide.
In addition to this, there's a concept of royalty baked into ImmutableX. This allows the creator of a collection to set a fee
that they receive for every sale of a token within their collection. And finally, all fees and royalties are paid by the asset purchaser.
So if someone puts up an NFT for, say, one ETH, then they will receive one ETH.
The fees get taken out on top of that value. So, let's have a little look at what this looks like. If we start by looking at the maker fees, as I said, this is set by
the application or marketplace that creates the original order to sell an NFT.
This sale order can be set directly on the API. Alternatively, by using the create order endpoint.
In terms of taker fees, these are sent to the application or marketplace that fulfills the order, i.e. when the NFT is bought.
So usually this is going to be some sort of marketplace where the user buys the NFT. And the fee for this is set by the create trade endpoint
on the ImmutableX API. There's a few rules that apply to maker and taker fees.
They cannot be set for more than three recipients. You can't set the same recipient more than once. The combined fee percentage can't be greater than 100%, and
the individual fees can't be less than or equal to zero. So each recipient has to receive at least something.
If we take a look at an example of how this works, we've got the Global Order Book where a transaction fee of 2% gets taken.
And then let's say we've got two marketplaces, Marketplace one and Marketplace two. And then an actor, Alice, who decides that they want to sell their NFT.
Now, let's say that Marketplace one and Marketplace two have different maker and taker fees configured 1% and 2% from Marketplace one
and 3% and 1% for Marketplace two. Now, in the instance that Alice lists her NFT for one
ETH then. On Marketplace one, the price is going to be listed as 1.5. And out of that 1.5, one ETH would go to Alice, Point
one would go to market place one to correspond to its 1%, maker fee 0.02 Would go to marketplace one
to correspond to the 2% taker fee and ImmutableX would get 0.02 which corresponds to the 2% transaction fee.
Now, in this case, this assumes that someone buying the NFT would actually be buying it from Marketplace one as well.
If the buyer purchases from a different marketplace, Marketplace two, then in this case the price would be different. It would be 1.04 ETH. And the main difference is that the taker fee
would be Marketplace two in this case, which has a slightly lower taker fee percentage of 1% rather than 2%, causing the difference in value.
If we look at the rules that apply to royalties, then royalties can be set both collection wide as well as on a per token basis, and
you can have up to 50 royalty recipients specified. The royalty percentage for a single recipient can exceed 100% of the
sale price, but the combined percentage for all recipients could exceed 100%. And this works because it's calculated as an extra value on
top of the sale price per the previous slide. So let's have a look at an example. Let's say Bob purchases an NFT, which has a 10% royalty
and is listed for a sale price of 1.08. In that instance, Bob would pay 1.10.
And Alice as the seller would receive one ETH and then Susie
as the creator would receive 0.1 ETH, which corresponds to the 10% royalty. Now, in this example, this is assuming that maker and taker fees are zero and that the 2% IMX protocol fee is zero.
So this is just a simple example just to demonstrate how royalty works.
Let's take a look at a more fully featured fees example. Let's say an NFT is listed for one ETH on ImmutableX. And let's say that the marketplace that was the maker had
a fee of 1%. The taker marketplace had a fee of 2%. Of course we have the ImmutableX protocol fee of 2%.
Let's say that the royalty fee was 10% and was to one recipient. In that case, the buyer would see the NFT listed as 1.15
ETH, which is corresponding to the one ETH in value that it was listed at, plus another 0.15 ETH, which corresponds of the maker taker protocol and royalty fees added together.
Once this NFTs purchased, the seller would receive the full one eighth that they listed the NFT for and the royalty recipient would receive
their 10% (0.1 ETH). Let's look at this in a visual way. Let's say Alice lists her NFT that has this 10%
royalty for sale at 1 ETH and that Bob purchases it. So we've got Bob paying 1.15 ETH.
1 ETH would go to Alice as the seller. 0.1 ETH would go to Susie as the creator. In this case, assuming that it's the same marketplace that's the taker and the maker.
Then 0.3 ETH Would go to the marketplace and then the protocol fee of 2%, in this case 0.02 ETH, would go to ImmutableX.
And that concludes the lesson on selling NFTs on ImmutableX. Thank you.