> For the complete documentation index, see [llms.txt](https://docs.collection.xyz/guides/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.collection.xyz/guides/technical-reference/royalties/relation-between-royalties-and-fees-in-the-amms.md).

# Relation between Royalties and Fees in the AMMs

Ultimately, they are distinguished by the beneficial party. Please refer to this destination chart<br>

|                                                                                           | Beneficial party                                  |
| ----------------------------------------------------------------------------------------- | ------------------------------------------------- |
| User-defined fee                                                                          | The user                                          |
| Royalty                                                                                   | The NFT collection (addressed defined by the user |
| Flat fee (as percentage of trade)                                                         | Collection.xyz                                    |
| Carry fee (as a percentage of user set trade fee, which is itself as percentage of trade) | Collection.xyz                                    |