Fees & Royalties

TIX Protocol implements a comprehensive fee structure that supports both protocol sustainability and creator royalties.

Fee Types

Protocol Fees

Fee	Description	Paid By	Destination
Permit Fee	Per-ticket fee when issuing	Integrator	Protocol vault
Transfer Fee	Per-ticket fee on direct transfers	Integrator	Protocol vault
Resale Fee	Percentage of sale on secondary market	Integrator	Protocol vault

Event Royalties

Setting	Description
Royalty BPS	Percentage of resale price (basis points)
Minimum Floor	Minimum royalty amount per transaction
Recipients	Up to 3 parties who receive royalty splits

Setting Event Royalties

Royalties are configured per-event during registration:

await registerEvent({
  connection,
  payer: integratorAuthority.publicKey,
  integratorIdentity,
  eventId: 1n,
  totalSupply: 5000n,
  royaltyBps: 500, // 5% royalty
  minRoyaltyFloor: 100_000n, // Minimum $1.00 (in minor units)
  royaltyRecipients: [
    { destination: artistAta, bps: 300 }, // 3% to artist
    { destination: venueAta, bps: 200 }, // 2% to venue
  ],
});

Currency & Units

USDC

All fees and payments use USDC (USD Coin):

• Stablecoin pegged to US dollar

• 6 decimal places (1 USDC = 1,000,000 minor units)

• Predictable pricing without crypto volatility

Unit Conversions

Input Format	On-Chain Storage	Example
Cents (off-chain)	Minor units	$0.50 → 500,000 minor units
Basis points	Basis points	5% → 500 BPS
Dollars	Minor units	$100 → 100,000,000 minor units

// Conversion formula
const minorUnits = cents * Math.pow(10, usdcDecimals - 2);

// Example: 50 cents with 6 decimals
// 50 * 10^(6-2) = 50 * 10,000 = 500,000 minor units

Payment Flows

Primary Sale

┌─────────────────────────────────────────────────────────────┐
│                     PRIMARY SALE FLOW                       │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│  Buyer pays ───▶ Integrator ───▶ Permit Fee ───▶ Protocol   │
│  (off-chain)     (holds funds)   (per ticket)    Vault      │
│                       │                                     │
│                       ▼                                     │
│               Integrator keeps                              │
│               remainder                                     │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Example:

• Ticket price: $50.00

• Permit fee: $0.25

• Integrator collects $50.00, pays $0.25 to protocol

Secondary Sale (Resale)

┌─────────────────────────────────────────────────────────────┐
│                   SECONDARY SALE FLOW                       │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│  Buyer ─────────────────┬────────────────────────────────▶  │
│  pays $100              │                                   │
│                         │                                   │
│                         ├──▶ Royalties (5%)    = $5.00      │
│                         │    ├── Artist (3%)   = $3.00      │
│                         │    └── Venue (2%)    = $2.00      │
│                         │                                   │
│                         └──▶ Seller receives   = $95.00     │
│                                                             │
│  Integrator ────────────────▶ Resale Fee (1%)  = $1.00      │
│  Treasury                     to Protocol                   │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Direct Transfer (No Sale)

┌─────────────────────────────────────────────────────────────┐
│                   DIRECT TRANSFER FLOW                      │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│  Owner ───▶ transfers to ───▶ New Owner                     │
│                   │                                         │
│                   ▼                                         │
│  Integrator ──▶ Transfer Fee ──▶ Protocol Vault             │
│  Treasury       ($0.25)                                     │
│                                                             │
│  (No royalties on direct transfers)                         │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Royalty Calculations

Standard Calculation

const royaltyAmount = (askPrice * royaltyBps) / 10000;

Example:

• Ask price: $100.00 (100,000,000 minor units)

• Royalty BPS: 500 (5%)

• Royalty: $5.00 (5,000,000 minor units)

With Minimum Floor

The minimum floor ensures creators receive meaningful royalties even on low-price sales:

const calculatedRoyalty = (askPrice * royaltyBps) / 10000;
const royaltyAmount = Math.max(calculatedRoyalty, minRoyaltyFloor);

Example 1: Floor doesn't apply

• Ask price: $100.00

• Royalty rate: 5%

• Minimum floor: $1.00

• Calculated: $5.00 > $1.00 floor

• Result: $5.00 royalty

Example 2: Floor applies

• Ask price: $10.00

• Royalty rate: 5%

• Minimum floor: $1.00

• Calculated: $0.50 < $1.00 floor

• Result: $1.00 royalty (floor applied)

Royalty Distribution

Royalties are split among up to 3 recipients:

// Event configuration
royaltyBps: 500; // 5% total
royaltyRecipients: [
  { destination: artistAta, bps: 300 }, // 3%
  { destination: venueAta, bps: 200 }, // 2%
];

// On $100 sale
// Total royalty: $5.00
// Artist receives: $3.00 (300/500 of $5.00)
// Venue receives: $2.00 (200/500 of $5.00)

Validation: The sum of recipient BPS must equal the event's royaltyBps.

Integrator Treasury

Each integrator has a USDC treasury ATA that:

• Receives payments from primary sales

• Pays protocol fees (permit, transfer, resale)

• Must maintain sufficient balance for fee operations

Treasury Management

// Check treasury balance
const treasuryBalance = await connection.getTokenAccountBalance(
  integratorTreasuryAta
);

// Ensure sufficient funds before operations
if (treasuryBalance.value < requiredFees) {
  // Fund treasury before proceeding
}