Fees

Description of DeFunds fees

Overview

In DeFunds both investors and managers can be charged with different kind of fees. On another hand, managers can also earn different fees. Let's examine each aspect in detail.

Subscription Fee

This fee is paid in USDT by investor at the moment of investing in the fund, in the same transaction with the investment. The fee is deducted from the investment amount. The total fee consists of a service fee and a fund share. Service fee is 1% of the investment amount. Manager sets fund's subscription fee rate as a percentage when creating the fund, and it cannot be changed in the future. The rate cannot exceed 5%, and this limit is implemented in the Fees contract.

Note: Subscription fee is not refundable even in case of cancelling deposit

Performance Fee

Performance fee amount is defined as a percentage of the profit relative to the previous report, or relative to the All-Time High (ATH) for funds with the High-Water Mark (HWM) setting enabled

This fee is only charged if the fund has shown a profit during the last reporting period. The fee is charged in USDT at the time of the report from the fund's balance. The total fee consists of a service fee and a fund share. The service fee is 7.5% of the profit. Only manager can set the performance fee value when creating the fund, and it cannot be changed in the future. The rate cannot exceed 50%, and this limit is enforced in the Fees smart contract.

Manager Share

Manager gets the share of all the subscription fees and performance fees. The % of share is determined in the fund settings and during the fund creation.

Fund owner can change the manager share. This setting will take effect during the next reporting period. The reason for this is to avoid a situation where the fund owner appoints themselves as a manager just before the reporting period and takes the entire share.

Execution Fee

This fee covers report transaction costs and is collected in USDT from the fund's balance at the time of the report. For example, in Arbitrum network at a normal gas price of 0.1 gwei, it equals ~0.00153 ETH, but it may increase with gas prices. The execution fee can be charged multiple times if the report does not fit into a single transaction.

Execution fee is also charged to cover auto-closing expenses.

For cost-saving purposes, we do not generate reports for funds with AUM below 50 USDT.

Create Fund Fee

This is a fee, that is paid by manager at the stage of creating fund. It equals nominal 1 USDT, and helps us to prevent malicious users from spamming empty funds.