Transfer fees and flags

When an NFT is minted, the issuer picks a few settings. They are printed into the NFT's ID and stay there for good.

The transfer fee is the issuer's cut of later sales. It can be anything from 0% to 50%. When the NFT is sold again, the ledger sends that share of the price to the issuer. The seller gets the rest.

This happens inside the ledger. It does not depend on which marketplace handles the sale. Every sale through an accepted offer pays it.

The fee never changes. A collection minted at 5% stays at 5%. If you plan to resell, the fee comes out of what you receive.

The flags are on/off switches:

• Transferable. If off, the NFT can only move to or from the issuer. People call these soulbound tokens.
• Burnable. If on, the issuer can destroy the NFT while you hold it. Useful for tickets. Worth knowing before you buy.
• Only XRP. If on, the NFT can only be bought and sold for XRP.
• Mutable. If on, the issuer can change the NFT's URI later. See Dynamic NFTs.

You can always burn an NFT you hold, whatever the flags say.

Flags. Set on NFTokenMint, stored in the first 16 bits of the NFTokenID.

Value 4, tfTrustLine, is deprecated. Setting it is invalid since the fixRemoveNFTokenAutoTrustLine amendment.

Flags add up. A Flags value of 11 is burnable, XRP only and transferable: 1 + 2 + 8.

Without flagTransferable, a transfer to the issuer must come from the issuer's buy offer, not from the holder's sell offer. Any other transfer fails with tefNFTOKEN_IS_NOT_TRANSFERABLE.

Transfer fee. TransferFee is an integer from 0 to 50000, in units of 1/100,000. A value of 1 is 0.001%. A value of 314 is 0.314%. The maximum, 50000, is 50%. Setting it requires tfTransferable.

On NFTokenAcceptOffer, the issuer receives the percentage and the rest goes to the seller. In a brokered sale, the broker's fee is taken first. The seller must still receive at least the sell offer's amount before the transfer fee applies.

Fees in tokens. If an NFT has a transfer fee, it can only be traded for tokens the issuer has a trust line for. An offer in another token fails with tecNO_LINE. An issuer who wants fees in XRP only can mint with tfOnlyXRP.

Blackholed issuers. Some issuers give up all keys to prove no more NFTs can be minted. After that, no one receives the transfer fees from later sales.

Reading the settings. nft_info on a Clio server returns flags and transfer_fee for one NFT. account_nfts returns Flags for each NFT an account holds.

Related: Checking a collection.