Fees

There is a small fee, currently 0.04%, on minting and redeeming TD. The fee is collected by effectively burning an amount of TD and thus accrues fully to TD holders, allowing long term holders to benefit from short term minting and redemption activity. Such a fee is needed to prevent timing exploits that could otherwise be feasible at rebase time.

There is a performance fee, currently 10%, on profits from the strategies where the underlying assets are deployed. A portion (to be decided by a governance process) of collected performance fees will be set aside in an insurance fund, to be used in case of a capital loss event. Note that this is the only fee that goes to the protocol, which thus receives fee income only when it produces profit for TD holders