# Royalty recipient

{% hint style="info" %}
The royalty recipient entity is automatically created when the address is added by the seller.
{% endhint %}

Royalty recipients are pseudo-entities, since they cannot perform any actions in the protocol, except for withdrawing the funds. The seller can add any address as a royalty recipient, and if the protocol is used for sequential commit, the royalty recipients are given a part of the proceeds.

Funds management is described in [Deposit and withdraw](/using-the-protocol/dacp-tools/finances/deposit-and-withdraw.md).


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