Management Fee

The management fee mechanism is designed to compensate managers for their ongoing services in overseeing the Onchain Investment Vehicle (OIV). The fee is accrued periodically, reflecting the time elapsed since the last distribution and the NAV of the OIV during that period.

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Principles

1. Payment Method:

• The performance fee is distributed in shares, ensuring alignment between the manager and the investors.

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Formula

$$M = NAV\times \frac{t-\tau}{Y}\times r_M$$

Where:

• $M$: due Management Fee

• $NAV$: total Net Asset Value

• $t$: current timestamp

• $\tau$: previous fee distribution timestamp

• $Y$: Distribution period (usually a year)

• $r_M$: the annual Reward rate