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.