In this paper, we study the nonlinear dynamics of a butterfly valve actuated by the induced electromotive force (emf) of a permanent magnet, with a focus on the on-off dynamics of the valve and its nonlinear response under ambient perturbation. The complex interplay between the electromagnetic, hydrodynamic and mechanical forces leads to a fundamentally multiphysical, nonlinear dynamical model for the problem. First, we analyze the stability of the on-off conditions in terms of three critical dynamical parameters - the actuating DC voltage, inlet velocity and the opening angle. Next, the response of the system to perturbations around the equilibrium points is studied in terms of the frequency response using the method of multiple scales. Finally, evidence of fractality is established using Melnikov analysis and a plot of the basins of attraction. The results reported in the article, in addition to being of fundamental theoretical interest, are expected to impact practical design considerations of electromechanical butterfly valves.