Rental Fees
This post is subject to change and will be updated as needed. Any change to our fee structure will be accompanied by an announcement in our Discord
Listing Fee
Each time an Owner adds a new rental listing to the Flowty Marketplace, a fee of $1 will be assessed. As of now, users cannot edit listings, though we are currently evaluating an edit feature.
NOTE: the listing fee has been waived until further notice
Rental Fee
When a Renter rents an NFT from the Flowty Marketplace, a rental fee is collected. The Rental Fee is split in three ways:
i) Owner Share: Remainder after Flowty Fee and Collection Royalty ii) Flowty Fee: Set at 5% of the Rental Fee iii) Collection Royalty: Variable percentage, set by the issuer/creator of the NFT The Flowty fee and the royalty tied to the rental fee are paid as part of the initial rental and are agnostic of whether the rented NFT is returned.
There are examples below to help illustrate the mechanics of the fee.
Collection Royalty Assessed on Rental Default (Not a Flowty Fee)
There are two components of royalties on Flowty rentals:
a share of the Rental Fee (discussed in the previous section)
a share of the Refundable Deposit if and only if a Renter defaults (does not return the rented NFT)
The following outlines the process for Refundable Deposits and how applicable royalties come into play:
When an NFT is rented by a Renter, a Refundable Deposit is collected and set aside in trustless escrow (not in Flowty’s custody).
If a rented NFT is returned by the Renter, the refundable deposit is returned to the Renter.
If a Renter defaults (does not return the rented NFT before the end of the rental term), the refundable deposit is split between the NFT issuer/creator (at a variable royalty rate set by the creator) and the Owner.
At no point does Flowty have custody or control of the Refundable Deposit.
Flowty does not profit in any way from the royalty.
The following examples may be helpful:
Notes:
Refundable Deposit is collected as part of the initial rental and is returned in full to Renters if a rented NFT is returned by a Renter
Flowty never takes custody of Refundable Deposits — they are either returned to Renters (returned NFT scenario) or split between Owners and NFT creators (if Renter defaults — NFT is not returned)
Questions?
Please feel free to contact us via Discord with any questions regarding the calculation of rental fees
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