Fee on Pinocchio (PNCO)

There are three types of fees associated with using Pinocchio (PNCO)

• Protocol Fees

• Gas Fees

• Marketplace Fee

Fees are additional amounts that a user pays on top of a base price of an asset. These can be imposed by various entities. The following table illustrates the fees on Pinocchio (PNCO).

Entity	Type of Fee	Amount	Example
Pinocchio (PNCO)	Protocol	2% of every NFT trade	Alice lists an NFT for 1 ETH on a marketplace. When Bob purchases this NFT, he would need to pay 1.02 ETH where 1 ETH goes to Alice and 0.02 ETH goes to Pinocchio (PNCO).
3rd parties builds marketplace via Pinocchio (PNCO)	Maker Marketplace Fee	"Decided by 3rd platforms"	Alice wishes to receive 0.99 ETH for her NFT assets and lists it on a marketplace that imposes a maker fee of 1%. Therefore, the price that the asset will be listed for on the marketplace is 1 ETH.
3rd parties builds marketplace via Pinocchio (PNCO)	Taker Marketplace Fee	Decided by 3rd platforms	Alice wishes to receive 1 ETH for her NFT assets and lists it on a marketplace. Bob wishes to buy the asset from a different marketplace that imposes a taker fee of 1% and marketplace fee is 1.5% and will therefore be presented with a buying price of 1.025 ETH inclusive of the taker marketplace fee.
Collection royalty recipient, ie. owner of an NFT smart contract	Royalty	Decided by Creators	Alice mints a collection of assets on Pinocchio (PNCO) and sets a 5% royalty for every asset in the collection to go to her. Bob owns an asset from Alice's collection and sets the sale price of 1 ETH. The marketplace on which he lists the asset will display a selling price of 1 ETH. When Ciaran comes along and buys this asset, he pays 1.05 ETH, 1 ETH of which goes to Bob, and 0.05 ETH goes to Alice.