Explain a Hedera royalty fee on an NFT gift

An HTS royalty fee can include a fixed fallback. The fee path changes when the network finds no fungible consideration flowing back to the NFT sender in the exchange.

Inspect all legs of the NFT transfer

Identify the serial, sender, receiver and fungible asset transfers inside the transaction. In the example a five-percent royalty on eligible consideration of 200 HBAR is 10 HBAR. The gift has no such consideration, so its configured fallback can charge the NFT receiver two HBAR, assuming no exemption.

Sale:  NFT from S to B, 200 HBAR from B to S in the same exchange
Gift:  NFT from S to B, no fungible value returned to S
Rule:  5% royalty, fixed fallback of 2 HBAR

Record the denomination of the assessed fee

A purchase paid separately in an earlier transaction does not automatically appear as consideration in the NFT transfer. Use the transaction’s assessed fees to identify the collector, denomination and effective payer. A display price from the marketplace cannot establish the on-chain fee path.

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