Fees

All fees are optional, automated, and upgradeable through OIV governance. Any fee type can be distributed to any number of addresses/contracts.

Supported Fee Types

Management Fee

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

Where:

• $M$: due Management Fee

• $AUM$: current Assets Under Management

• $t$: current timestamp

• $\tau$: previous fee distribution timestamp

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

• $r_M$: the annual Reward rate

Profit Management Fee

$$PM = (AUM-ND)\times \frac{t-\tau}{Y}\times r_M$$

Where:

• $PM$: due Profit Management Fee

• $AUM$: current Assets Under Management

• $ND$: current Net Deposits

• $t$: current timestamp

• $\tau$: previous fee distribution timestamp

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

• $r_M$: the annual Reward rate

Deposit Fee

$$NAV_{deposit}=NAV\times(1+r_D)$$

Where:

• $r_D$: Deposit Fee Rate

Redemption Fee

$$NAV_{redemption}=NAV\times(1-r_R)$$

Where:

• $r_R$: Redemption Fee Rate

Alternative Fee Types

At Rethink, we recognize that some OIVs may need alternative fee calculation methods based on their specific use cases. While we are developing robust automated performance fee contracts, our focus remains on providing maximum flexibility without compromising on decentralization and security.

Off-chain Fee Calculation

OIVs can calculate fees off-chain and propose them as a transaction through OIV governance.

Custom Fee Contracts

Custom third-party contracts may be deployed to keep calculating the fees. In that case, OIV may delegate fee calculation logic to the respective contract, given that they trust it.