Fees & protocol revenue

In the main pool (V2), active listings earn an equal share of distributable acquisition fees, regardless of backing. Distribution first removes any purchaser FWA-buy allowance, then the protocol acquisition cut, then the crown's share. The remaining ETH is divided across active listings ¹.

The position being allocated earns its share of that acquisition before leaving the active pool. Staged positions earn nothing until activation. Earnings accrue as withdrawable credits; collecting them does not require withdrawing the NFT.

Equal per acquisition, different over time

Higher-backed listings are less likely to be selected, so they tend to remain active for more acquisitions. They earn the same ETH fee per acquisition as a smaller listing, but may earn it for longer. The crown adds a separate reward pot for its holder, and FWA depositor rewards use square-root backing rather than the equal ETH split.

A listing can be selected immediately. Fees, FWA rewards, and crown income are variable; they do not guarantee recovery of the depositor's costs or a particular return. Unless a listing has an oracle exemption, the backing ceiling limits how much it can commit when deposited or repriced to reduce its selection chance.

Protocol fees

• Acquisition cut. A configured percentage of the fee remaining after the purchaser FWA allowance. It is part of the quoted acquisition fee, rather than an additional purchaser payment.
• NFT-outcome settlement cut. A configured percentage of backing is withheld from the depositor's return when the purchaser keeps or relists the NFT, including equivalent depositor and public-finalization outcomes.
• Retained bid amount. ETH cashouts and FWA cashouts have separate rates. The source and deployment defaults pay 90% of backing as ETH or spend 92.5% buying FWA for the purchaser, retaining 10% or 7.5% respectively. The remainder goes to the protocol or active depositors according to the pool's setting. There is no additional NFT-outcome cut on either path.
• Early-crown fee. Voluntarily withdrawing the crown or reducing its backing during its first 12 hours charges 1% of the old full backing. This is separate from settlement fees.

Each cashout rate can be configured independently between 80% and 95% and is read at settlement time, rather than fixed when the listing is created or allocated. The FWA percentage describes ETH spent on the market; token output depends on trading fees, execution price, and the purchaser's minimum-output guard.

Recognized FWAIR listings pay zero NFT-outcome settlement fee. Their voluntary early-crown fee still applies. A collection-level oracle exemption alone does not grant this fee waiver. An eligible oracle-drift kick returns full backing and does not charge that early-exit fee.

Where accrued protocol fees go

Anyone can call payoutFees() on the main pool. Its configured buyback percentage goes directly to FWAV2Buyback, which funds depositor rewards, purchaser epochs, and burning. Any remainder goes to the pool's configured payout address. The buyback percentage and token distribution are configurable settings.

Funding a reserve and executing a buyback are separate transactions. Buybacks use the contract's execution limits and configured reward split. The shared FWA market's 1% trading fee follows the hook's separate recipient and is not included in main-pool payoutFees(). See FWA buybacks for token and reward flows, or Custom Pools for their separate fee model.