🤑Fee Structure

The protocol includes fees to manage operational costs and ensure sustainability. Specific fee percentages may be waived during initial launch phases and may be subject to change by R25 protocol in the future.

IssuerCo Fees

• Operational Costs: IssuerCo will incur operational costs from time to time (e.g., third-party investment manager fees, custody fees, technical service fees, professional service fees, liquidity provision costs). These fees are generally paid with higher priority before promotion fees are paid to StakingCo. During the launch phase, some of these costs may be covered by a capex budget.

• Promotion Fee: IssuerCo will pay a promotion fee to StakingCo in consideration of its promoting rcUSD by providing the staking service in respect of rcUSD.

Asset Management Company Fees

• Management Fee: after an asset management company is engaged to administer and manage the Supporting Assets, such asset management company may charge an asset management fee (this will be deducted from the Supporting Asset pool), calculated on the assets under management (AUM) within the Supporting Asset pool. IssuerCo will negotiate with such asset management company to ensure such fee is within a competitive range, e.g., between a lower and upper bps bound annually.

Staking Fee

• Rate: A standard fee charged on the amount of rcUSD being staked by a user is part of the protocol's design.

• Waiver: This staking fee is currently waived at product launch to encourage early adoption.

• Purpose: If activated, this fee would contribute to protocol revenue and could help regulate staking inflows.

Unstaking Fee

• Rate: A standard fee at the rate of 1% will be charged on the principal amount of rcUSD+ when users unstake their rcUSD.

• Discount/Waiver:

  • The unstaking fee is waived by StakingCo at the time of the product's launch.

  • Fee discounts may be activated for rcUSD that remains staked over certain periods of time (e.g., reduced rates for staking over three months, waived for staking over six months).

  • StakingCo reserves the right to adjust, reduce or increase the unstaking fee rate in the future.

• Purpose: To discourage frequent, short-term withdrawals, promote staking pool stability, and generate protocol revenue.

Non-R25 Fees

• Gas Fees: Users are responsible for network gas fees for transactions on the respective blockchains.

• Fees charged by External DeFi Protocols: Users engaging with rcUSD/rcUSD+ on third-party DeFi platforms will be subject to those platforms' fee structures.