# Royalties Royalties define how value generated from a child asset is shared between the parent asset owner and the studio that integrates the asset. Each parent asset includes royalty settings that determine how payments are split whenever a child asset creates economic activity. Royalties are defined at the parent asset level. When a studio mints a child asset, the child inherits these royalty rules automatically. These rules are **immutable** and cannot be changed once a child asset has been created. To ensure immutability, a studio must upgrade its collection with the protocol’s abstract royalty contract before minting any child assets. This upgrade enforces the correct royalty logic at the smart contract level and prevents any manipulation or alteration of royalty distribution by the integrating studio. Only collections that implement this protocol extension are permitted to mint child assets. Royalty payments are executed by the protocol through smart contracts. Whenever a child asset is involved in a paid mint or a secondary trade, the royalty distribution is triggered. The protocol routes the correct share to the parent asset owner and the integrating studio according to the rules defined in the parent asset. Studios cannot override inherited royalty rules, ensuring stable and predictable economic terms for every asset reused in the ecosystem. The royalty model creates aligned incentives. Creators benefit when their assets are reused in more games, while studios gain value from integrating high quality assets that enhance gameplay and attract users. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://infinity-games.gitbook.io/infinity-games-docs/interoperable-asset-store/key-concepts/royalties.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.