Fees

Fees

We take platform fees when our users are profiting. Therefore, we intend to minimize the fees for brktETH to the direct expenses we incur in the administration of the token.

No fees are charged in Phase I. Once brktETH is allocated by the smart contract in Phase II and earning block rewards, we will charge a small fee to cover the administrative costs for brktETH.

Bracket expenses of running brktETH include:

• Occasional treasury re-balancing costs

• Working with new LST/LRTs to expand the assets accepted by our treasury

• Monitoring the risk of the assets accepted in the treasury

• Upgrading the brktETH smart contract when needed

• Manage the unallocated-points from partner LSTs/LRTs, not allocated to a particular depositor

• Other administrative tasks

To cover these costs we will initially be charging a 0.02% annual fee on the treasury assets. The fee will accrue continuously. So for example, if the treasury base rewards returned 3.5% annually, we would return 3.48% in value to the holders of brktETH. We reserve the right to adjust this fee over time, in which case adequate prior notice will be given.