Revenue Model
1. Performance Fee
Fee Structure: A51 takes up to 10% performance fee on all profits generated by positions managed on A51 by LPs.
Example: If a pool generates $5,000 in fees for LPs, A51 will take 10% of that amount as a performance fee:
$5,000 x 10% = $500
2. Management Fee
Fee Structure: A51 charges an annual management fee of 2.5% on the total assets managed by the strategy creators. This fee is charged pro-rata, meaning it is calculated based on the daily average TVL and charged on a yearly basis.
Example: If the total assets under management (AUM) for a pool is $10,000, the annual management fee would be:
$10,000 x 2.5% = $250 per year
This fee is typically charged in proportion to the length of time assets remain in the pool.
3. Strategy Creation Fees
Fee Structure: A51 charges a flat fee of $5 for each strategy created within the platform.
Example: If 50 new strategies are created within a given month, the revenue from strategy creation fees would be:
50 strategies x $5 = $250
3. Intent Execution Fees
Fee Structure: A51 charges a 0.005% fee per intent executed which is deducted from the AUM (asset under management) of the strategy.
Example: The AUM for a strategy is $1000 and the auto-rebalance intent is executed 6 times in 24 hours, the deduction will be as follows:
Deduction per Intent: $1000 x 0.005% = $0.05
Deduction in 24 Hours: $0.05 x 6 = $0.3
Last updated