# Fees

## Total Expense Ratio

The Total Expense Ratio is charged by the Investment Manager and accrues daily on-chain for the management of the US T-Bills portfolio.

| Item                | Description                                            | Fee        |
| ------------------- | ------------------------------------------------------ | ---------- |
| Total Expense Ratio | Annual Expense Ratio charged daily on the current TVL. | 0.30% p.a. |

The scope of the Total Expense Ratio includes:

* Maintaining the target weighted-average maturity of the portfolio
* Rolling over matured US T-Bills into new securities and compounding earned returns
* Complying with the regulatory requirements of the management of Investors’ capital
* Commissioning third-party audits of portfolio assets
* Commissioning regular smart contract audits and security reviews of the TBILL Vault by third-party providers
* Custodian fees

## Transaction Fees

The transaction fee will be imposed on a user during a subscription or redemption process (paid in USDC). This fee is computed on-chain and will be floated into the Investment Manager's treasury address.

| Item                 | Description                                             | Fee   |
| -------------------- | ------------------------------------------------------- | ----- |
| Transaction Fee Rate | Fee charged on subscription and redemption transactions | 5 bps |

The Transaction Fee will mainly cover the operational costs of maintaining the Vault across on-chain and off-chain venues. Some of the costs to be incurred are:

* Ethereum gas fees
* Bank wire fees
* Digital asset to fiat conversion fees