# Fees

### Fees

#### Fee Summary

<table><thead><tr><th>Fee Component</th><th>Rate</th><th>Frequency</th><th data-hidden>Launch Promotion Fee</th></tr></thead><tbody><tr><td>Minting Fee</td><td>0.05% (5bps)</td><td>Per deposit</td><td>Zero Fees</td></tr><tr><td>Redemption Fee</td><td>0.05% (5bps)</td><td>Per withdrawal</td><td>Zero Fees</td></tr><tr><td>Management Fee</td><td>0.40% p.a. (40bps) to BNY<br>0.60% p.a (60bps) to OpenEden</td><td>Accrues daily </td><td>Zero Fees</td></tr></tbody></table>

***

#### Transaction Fee

The transaction fee is computed on-chain and directed to OpenEden's treasury address. It consists of two components:

**Formula:**

```
transactionFee = MAX(minimumTransactionFee, (depositOrWithdrawAmount * transactionFeeRate + partnershipFeeRate))
```

**Base Transaction Fee**

A base layer fee applied to all deposits and withdrawals, covering:

* Wire transfer costs
* Execution spread
* Trading fees
* Margin fees

| Parameter               | Description                                 |
| ----------------------- | ------------------------------------------- |
| Transaction Fee Rate    | Base percentage applied to all transactions |
| Minimum Transaction Fee | Floor amount for any transaction            |

**Partnership Fee**

An additional fee component applied to transactions from users referred by OpenEden affiliate partners. Fee discounts may be granted by setting a **negative `partnershipFeeRate`**.

***

#### Management Fee

OpenEden's management fee of **1% per annum** is not embedded in the token exchange rate. Instead, it is collected through a **daily token minting mechanism**.

**Daily Fee Calculation:**

```
Daily Fee = (Total AUM × 0.0100) / 365
```

**Minting Process:**

1. The daily fee amount (in USD) is converted to HYBOND tokens at the current exchange rate (= BNY NAV)
2. Additional HYBOND tokens representing the daily management fee are minted to OpenEden's custody wallet
3. These tokens maintain full **NAV backing** by the underlying fund units

> ℹ️ The on-chain NAV per token always equals the off-chain BNY NAV per unit. Strict 1:1 parity is maintained at all times. Management fee tokens are included in total supply and are fully backed.


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