I know but it doesn’t make sense. Isn’t this the fee for using the auctionhouse? If my item doesn’t sell then the auctionhouse did a bad job, why am I paying it? Shouldn’t I pay when they actually do a service to me?

Also then because the deposit is returned if the item sells you can also use ruses such as setting buyout price ridiculously high so it looks like your item is worth a lot. And setting the minimum price so high that the Auction starts at the level you want. Both of these things also makes it easier for people to transfer flezz between accounts because it would only require 2 people instead of 3 to set this up.