> For the complete documentation index, see [llms.txt](https://whitepaper.frak.id/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.frak.id/frak-protocol/earning-model/ecosystem-fees-and-royalties.md).

# Ecosystem Fees and Royalties

**Fees**

**Frak** will charge fees to various In-ecosystem Activities as indicated: 

| In-ecosystem Activities  | Fees (%)                            |
| ------------------------ | ----------------------------------- |
| Fraktion 1st sale        | 2 (no flat fee)                     |
| Fraktion 2nd sale        | 2 (no flat fee)                     |
| Content Related Revenue  | 2 (no flat fee)                     |
| Advertisers and Partners | 2 (no flat fee)                     |
| Withdrawals              | 2 (no flat fee, minimum of FRK1000) |

#### Royalties

**Royalties for Creators’ Work** is a flying wheel that enables Creators to finance the development of their next works. NFT platforms like the leading one, Opensea, announced new optional creator royalties and will maybe cut creator royalties, whereas [Creator Royalties](https://nftevening.com/ethereum-nft-creators-earned-over-1-8b-in-royalties-report/) has been an industry standard across the web3 space almost since the beginning.

That's why, Frak invented an innovative way to compensate Creators. It allows them to benefit from the advantages of royalties in any case, even if the Fraktions are sold many times on different platforms.

The percentage of creator royalties depends on two factors : 

* the profitability of the Fraktion
* the number of levels of referral above the user who consumes the content. 

The percentage of creator royalties is in range between 25% and 70%.


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