Fees
Five charges. Every one of them comes out of rent, and every one appears as its own line in the Roll.
| Charge | Rate | Charged on |
|---|---|---|
| Deposit | None | — |
| Redemption | None | — |
| Property management | 7% | Rent actually collected, including arrears banked this month |
| Property taxes | 0.95% / year | The portfolio's appraised value, one twelfth each month |
| Insurance | 0.32% / year | The portfolio's appraised value, one twelfth each month |
| Management fee | 0.75% / year | The USDG the vault holds, one twelfth each month |
| Performance fee | 10% | Rent collected, net of the property costs above |
The first three are property costs — bills the buildings generate. The last two are what the vault charges for running itself.
Two rules that are not negotiable
Fees come out of rent, never out of principal. Your deposit is not charged anything to sit in the vault. If a month collects no rent, the property costs still have to be paid from somewhere, and that will show in the Roll — but the performance fee is not levied.
A bad month charges no performance fee, and none is carried forward. The performance fee floors at zero. It is not accrued against a future good month and collected later.
Property management is charged on what arrived
Not on rent theoretically due. A unit that is empty generates no property management fee, and a tenant who did not pay costs the manager nothing. Charging on scheduled rent would pay the manager the same whether or not they collected it.
The performance fee is charged on rent only
The curve tax — the 1% of community-token trading that is routed into the vault — sits outside the base. Charging a performance fee on trading volume would pay the operator to encourage churn, which is the opposite of what this product is for.
Where you can see all of this
Every one of the five is a separate line in the Roll's expenses section, written to six decimal places. They add up to expenses_total, and collected + arrears − expenses_total is the rent_net that moved the price.