Platform Fee
Platform fee in the Reserve Index Protocol
Platform Fee
A platform fee is applied to both the TVL and Mint fees before they are distributed to recipients.
This platform fee is defaulted to 50%, but can be set per-DTF, and is recalculated and manually adjusted on a monthly basis, based on the following progressive fee schedule table.
| TVL | Platform Fee |
|---|---|
| TVL < $100m | 50% |
| 1b | 40% |
| 10b | 30% |
| 100b | 20% |
| 1T | 10% |
| $1T < TVL | 5% |
Example Calculation
A DTF with $3.1 billion in TVL and a TVL fee of 1% would have its platform fee calculated as:
(0.5 * 0.01 * $100 million + 0.4 * 0.01 * $900 million + 0.3 * 0.01 * $2.1 billion) / (0.01 * $3.1 billion) ≈ 33.5%This means 33.5% of the collected fees would go to the platform, and the remaining 66.5% would be distributed among fee recipients.
Technical Implementation
The platform fee is supplied to DTFs via a Platform Fee Registry contract, which is controlled by the platform owner multisig. This registry also provides DTFs with the current platform fee recipient address.
Fee Parameters and Constraints
The following parameters apply to all Index DTFs:
| Parameter | Value |
|---|---|
| Net platform TVL Fee minimum | 0.15% |
| Net platform Mint Fee minimum | 0.15% |
| Max admin-defined TVL Fee | 10% |
| Max admin-defined Mint Fee | 5% |