Fee Structure
Overview
Piron’s fee model is designed to be simple, transparent, and predictable. All fees are either:
Embedded in NAV (management fee, performance fee), or
Applied at transaction events (deposit/withdrawal fee, early exit penalty).
This ensures that investors always see the net effect of fees directly reflected in their returns.
Management Fee
What it is: An ongoing charge that covers portfolio management, custody, compliance, and administration.
How it works:
Expressed as an annual percentage (e.g., 0.25% – 0.75%).
Accrued daily and deducted from the pool’s NAV.
Reflected automatically in NAV/share pricing.
Transaction Fee
What it is: A minor fee applied on deposits and withdrawals.
Purpose: Covers operational costs such as gas fees, fiat settlement, bank transfer charges, and asset conversion.
How it works:
Fixed or small percentage (e.g., 0.05% – 0.20%) of the transaction amount.
Deducted at the time of deposit or redemption.
Does not accrue in NAV (applied only at the event).
Early Withdrawal Penalty
What it is: A fee for redeeming before the end of a chosen tenor.
Purpose: Protects long-term investors from dilution and prevents forced liquidation of underlying instruments.
How it works:
Only applies after the minimum hold period (e.g., 30 days).
Typically 1–3% of accrued value.
Penalty proceeds are either redistributed to remaining investors (anti-dilution) or directed to Piron’s treasury.
Performance Fee (Future)
What it is: A share of yield above a benchmark rate (e.g., U.S. risk-free rate).
Status: Not applied at launch. May be introduced later for higher-yielding pools such as corporate debt or emerging markets.
How it works:
Applies only on realized gains above benchmark.
Deducted at maturity or redemption.
Transparency
All ongoing fees are accrued into NAV and visible in daily/weekly NAV updates.
Transaction and penalty fees are disclosed at the point of deposit/withdrawal.
Quarterly reports will break down management, custody, audit, and transaction fee allocations.
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