# How do NFT royalty fees work?

**URL:** <https://forum.cardano.org/t/how-do-nft-royalty-fees-work/67435>\
**Category:** Native Tokens\
**Created:** [23 July 2021 15:15 UTC](https://forum.cardano.org/t/how-do-nft-royalty-fees-work/67435 "2021-07-23T15:15:41Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![bwbush](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/bwbush/32/29827_2.png) [@bwbush](https://forum.cardano.org/u/bwbush)\
**Post date:** [23 July 2021 16:24 UTC](https://forum.cardano.org/t/how-do-nft-royalty-fees-work/67435/2 "2021-07-23T16:24:14Z")

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Here are two relevant discussions on this forum:

- [Royalty fees](https://forum.cardano.org/t/royalty-fees/65054)
- [Custom TX Fees in native Tokens](https://forum.cardano.org/t/custom-tx-fees-in-native-tokens/63711)

The short answer is that if the NFT is held in someone’s wallet, then they can transfer it without a royalty. If it is or is held in a smart contract, then the contract can enforce royalties. The third situation is that not passing the token through the smart contract as it is transferred would conceptually invalidate the token so that it would be rejected by the smart contract in the future.

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_[View the full topic](https://forum.cardano.org/t/how-do-nft-royalty-fees-work/67435)._