# Seller's Fee Distribution & Royalty

By default, any user selling a Meta Realty DAO CNFT will have to pay fee equal to 10% of the sale price.&#x20;

Please keep in mind that any marketplace in which the Meta Realty DAO CNFT Collection is verified for resale, the seller will pay a 10% fee regardless of how much the marketplace charges as it's own fee.

Regardless of whether a marketplace charges 0%, 2%, or even 5% fees to cover their operating expenses, **Meta Realty DAO by default will not force a seller pay more than a 10% fee to sell a CNFT from our collection.**&#x20;

The proceeds from this fee will be distributed as follows:

1. **Marketplace Fee** - NFT Marketplaces typically charge a small fee to cover their own operating expenses, usually somewhere between 2-5%. This is taken right off the top of the 10% fee charged to the seller, and the remaining balance is divided between the Reservoir Fund Wallet and an Artist Royalty Fee.
2. &#x20;**Reservoir wallet** - Of the remaining balance, 70% will go to the Reservoir Fund Wallet.&#x20;
3. **Artist Royalty** - The final 30% will go to the Development Team as an Artist Royalty fee.&#x20;

It is important to remember that as a decentralized organization, while our Development team initially wishes to it is *possible* that at some point, users may vote to change this fee structure.&#x20;

### Example Breakdown of Marketplace Seller Fee

Let's imagine a sale of a Meta Realty DAO CNFT on a Marketplace which charges a 4% fee, and the CNFT was sold for 1,000 ADA.

The seller by default will pay a 10% fee, so of the 1,000 ADA sale price, the seller will receive 900 ADA.

The Marketplace itself charges the seller 4%, so of the 100 ADA fee, the Marketplace would receive 40 ADA. The math here is 1,000 ADA multiplied by 4% (or .04), which equals 40 ADA.

So, the fee is 100 ADA, and the Marketplace takes 40 ADA, leaving 60 ADA remaining.

Of that 60 ADA, 70% would go to the Reservoir wallet, and 30% would be considered an Artist Royalty.&#x20;

This means that on a 1,000 ADA sale, 42 ADA would go to the Reservoir Fund (60 \* 70% = 42), and 18 ADA would go to the Developers (60 \* 30% = 18).&#x20;

**IMPORTANT NOTE:** Please keep in mind that the Marketplace fee is paid FIRST out of the 10% fee charged to the seller
