Fee Structures

Yield & Returns · Lesson 5.4

Tokenized products can charge several kinds of fees. A management fee is charged on the assets under management. A performance fee takes a share of returns above an agreed hurdle. Subscription and redemption fees are charged when you enter or exit and weigh most on short holding periods. Custody, administration, audit and network costs may be bundled into one expense figure or listed separately in the offering documents. Some quoted yields are already net of certain fees and some are not. Check which fees are already included in the quoted yield and which are charged separately.

Wally’s note: everyone in the chain gets paid. then you.

Ask for the yield after all fees, then check what is charged on top.

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