Welcome to Magic Eden's comprehensive guide on understanding Maker and Taker fees. In this article, we will break down the fee structure for buyers and sellers on our platform, explain how rewards levels impact fees, and provide transaction examples for a better understanding. Please note that the fee structure is currently in beta mode and subject to change at Magic Eden's discretion.
Your Rewards Level and How It Affects Your Fees
Your rewards level plays a crucial role in determining the fees you'll be charged on Magic Eden. To find out your rewards level, simply check your user profile. For a deeper understanding of rewards levels, fee percentages, and how the rewards cycle operates, review this article. Let's dive in!
Maker Fees
Makers are users who provide liquidity to the marketplace by either selling items through listings or making offers. The Maker fee is not charged when listing an NFT or making an offer; rather, it is applied at the point of sale.
Taker Fees
Takers are users who utilize the liquidity provided by Makers by purchasing items, selling against an offer, or instantly selling against a collection offer.
Transaction Examples
Let's explore different transaction scenarios to better grasp how fees are calculated on Magic Eden:
Example 1: Buying a Normal Listing
In this scenario, the Buyer pays the Taker fee based on their rewards level, and the Seller pays the Maker fee based on their rewards level. Here's how the transaction unfolds:
The Buyer (4ieP) sends the listing price (0.01 SOL) + Taker fee (0.01 SOL * 0.013 = 0.00013) to a temporary intermediary account (4Zni).
The intermediary account (4Zni) sends the listing price - Maker fee (0.01 - 0.01 * 0.002 = 0.00998) to the Seller (5Enr).
The intermediary account (4Zni) sends the total fees (Maker + Taker) (0.01013) to Magic Eden's fees wallet (rFqF).
Example 2: Accepting an Offer
In this example, the Buyer (8D3G) pays the Maker fee determined by their rewards level, while the Seller (4ieP) pays the Taker fee based on their rewards level. Here's how the transaction proceeds:
The Buyer sends the offer price (0.025 SOL) + Maker fee (0.025 * 0.002 = 0.00005) to the Seller.
The Seller sends the total fees (Maker + Taker) (0.000375) to Magic Eden's fees wallet (rFqf).
Magic Eden transfers the NFT to the Buyer.
Example 3: Instant Selling
In this scenario, the Buyer is represented by an AMM Pool account. The Buyer Pool Account (DddE) pays the Taker fee based on the Buyer's (5Enr) wallet's rewards level. The Seller (4ieP) pays the Maker fee based on their rewards level. Here's how the transaction takes place:
The Pool account (DddE) owned by the Buyer sends the instant sell price (0.01 SOL) - Taker fee (0.01 * 0.013 = 0.00013) to the Seller (4ieP).
The Pool account owned by the Buyer sends the total fees (Maker + Taker) (0.00015) to Magic Eden's fees wallet (rFqf).
The Seller (4ieP) sends the NFT to the Buyer.
Frequently Asked Questions (FAQ)
Will I be charged a fee when listing?
No, there is no fee charged when listing an NFT. The Maker fee is only charged to the seller when their listing is sold, or to the buyer when their offer is accepted. Fees are only charged at the point of sale.
Understanding the fee structure on Magic Eden is crucial for making informed decisions as both a Maker and a Taker. We have seen how rewards levels impact fees and how these fees are calculated for various transaction scenarios. As we continue to refine and improve our fee system, we remain committed to providing a transparent and user-friendly marketplace for NFT enthusiasts.
Should you have any further questions or need assistance, our dedicated support team is here to help. Happy trading on Magic Eden!