# Royalties

There are two ways of distributing fees in Bit5. One way is Payment Splitter and the other one is EIP-2981.

#### Payment Splitter <a href="#payment-splitter" id="payment-splitter"></a>

Before inspecting the diagram, you should know some things about the payment splitter.

A payment splitter is a way to split the coming royalty fees between accounts. NFT contract owners can set fees for their NFTs. For example, let’s say we have a collection with this royalty information:

* Address A - 5%
* Address B - 2%
* Address C - 1%

And assume there is a buy operation with 100 BNB. Now, the fee is split to 3 accounts:

* Address A gets 5 BNB
* Address B gets 2 BNB
* Address C gets 1 BNB
* Service fee 2 BNB (2%)
* NFT owner gets 90 BNB

Only the NFT owner can add and delete royalties. The NFT contract MUST not have the EIP-2981 for using Payment Splitter (this is used for preventing double fees).

There will be a maximum fee percentage to protect users.

#### EIP-2981 <a href="#eip-2981" id="eip-2981"></a>

EIP-2981 is a standard for NFT royalties: [EIP-2981: NFT Royalty Standard](https://eips.ethereum.org/EIPS/eip-2981)

There is a function in this standard named `royaltyInfo(uint256 _tokenId, uint256 _salePrice)`. We are asking for the royalty amount by sending the sale price and the token id. After receiving the `receiver` and `royaltyAmount` we’ll be sending the fees.

The fee calculation is the same as above. With one difference, EIP-2981 only approves one receiver for one token.

**Fees**

Bit5 charges a 2% fee on items sold. For a limited time, our fees will be 0% so that you can enjoy the lowest fees on BNBChain.