Protocol Fees
Pricing
Protocol Fee - 5%
The Protocol charges a 5% commission to whatever fee the Fund Manager decides to apply to the Fund. The protocol treasury receives the commissions in the form of funds units (automatically redeemed).
Setup Fee
Should the Fund Manager decide to rely on the legal services offered by the Fume Protocol's partner to register the Fund, there will be an additional setup fee of $10'000. This fee is waived for managers registering the Fund under their existing licensed entities.
Example - Hedge Fund
Let's make a concrete example with a typical hedge fund fee structure.
Management Fee: 2%
Performance Fee: 20%
Asset Under Management $50M
For the sake of simplicity, let's assume a single NAV calculation at the end of the first year.
The Fund generated a performance (after management fees) of +35% growing the AUM grew by an additional:
diff_AUM = $50M * 35% = $17.5M The Performance Fee would then be:
perf_fee = $17.5M * 20% = $3.5M Assuming a linear growth throughout the investment period, the Management Fees would be:
mgmt_fee = ($50M + $17.5M/2) * 2% = $1.175M For a total of:
tot_fee = perf_fee + mgmt_fee = $3.5M + $1.175M = $4.675M
The Fund Manager will retain 95% of the generated Fees, leaving the remaining 5% to the protocol:
manager_fees = 95% * tot_fee = $4.441M protocol_fees = $0.234M
Note: to showcase a simple calculation this example doesn't consider other fees such as entry or exit fees.
Calculator
To simulate different scenarios and check more details about the calculations you can check out the following calculator:
Calculator
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