Fees

Nectar has two types of fees:

NAV Fees (% of NAV)

These cover the infrastructure and services required to run the Nectar protocol and issue, monitor, and manage tokens. Three NAV fees are defined at the moment:

  1. Protocol Fee

  2. Risk Monitoring Fee

  3. Asset Management Fee

Performance Fee (% of gains)

Performance fees go to the professional asset manager executing the trading strategies.

Notes on Fees

  • Fees accrue per second

  • Fees are calculated and updated at each NAV update

  • Fees are distributed whenever there's a redemption or redeemAndBurn event

  • The sum of fees between redemptions is referred to as Accrued Fees

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