Cryptoindex Whitepaper
  • INDX Whitepaper
  • Abstract
  • Content
  • Introduction
    • Indexes: Strong in Traditional Finance, Blue Ocean in Crypto
    • Intended audience
  • Platform Features
    • Benefits
    • Functionality
    • Index Creation and Management Process
    • Fees Structure
    • Changing the Composition of Indexes
  • INDX Tokenomics
    • INDX Tokenomics
    • Allocations, Lockup, and Vesting
    • Core Utility of INDX
    • Additional Utility of INDX
  • More details about INDX utility
    • Creators Subscription
    • Index Holders Fees
    • Incentivization Program
    • Additional Rewards for Index Holders
    • Additional Rewards for LPs
    • Advertising Promotion
    • Referral Program
    • Burning
  • Security
    • Security
  • Risks
    • Risks
  • Project Roadmap
    • Project Roadmap
  • Legal Disclaimer
    • Legal Disclaimer
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  1. More details about INDX utility

Index Holders Fees

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Last updated 5 months ago

All fees on the platform are presented in the section. This section will discuss in detail the calculation of entry/exit and management fees, which are paid in INDX tokens:

  • Entry/Exit Fees: The user pays a fee when entering/exiting the index. This one-time fee ranges from 0.5-5.0% of the position size as determined by the index creator.

  • Optional Management Fee: The index creator can introduce a monthly management fee of 0.0-5.0% per annum of the position size or 0.0-20.0% of the profit. This fee is not mandatory and is at the discretion of the index creator.

Below is an example of calculating the accrual of fee:

  • Index configuration: The entry/exit fee is 0.5%, and the management fee is 2% per annum from the position size. Suppose the user Bill enters the index with an amount of $1,000. Assuming the index grows by 5% every month, Bill stays in the index for 1.5 months.

Month

Action

Change of holdings

Balance

Fee

Fee Amount

0

Initial Capital

-

$1,000.0

Entry Fee(0.5%)

$5.00

1

5% Index Growth

$50.0

$1,050.0

Management Fee (0.167%)

$1.75

1.5

Additional Index Growth 2.5%

$26.3

$1,076.3

Management Fee (0.084%)

$0.90

1.5

Exit

-

$1,076.3

Exit Fee (0.5%)

$5.40

Total Fee

$13.05

Table 4. Balances and Fees Amounts

  • Index configuration: The entry/exit fee is 0.5%, and the management fee is 20% of the user’s profit. Suppose the user Bill enters the index with an amount of $1,000. Assuming the index grows by 5% every month, Bill stays in the index for 1.5 months.

Month

Action

Change of holdings

Balance

Fee

Fee Amount

0

Initial Capital

-

$1,000.0

Entry Fee(0.5%)

$5.00

1

5% Index Growth

$50.0

$1,050.0

1.5

Additional Index Growth 2.5%

$26.3

$1,076.3

1.5

Exit

-

$1,076.3

Management Fee (20.0%)

$15.26

-

$1,076.3

Exit Fee (0.5%)

$5.40

Total Fee

$25.66

Table 5. Balances and Fees Amounts

By understanding these fee structures and the potential growth of their holdings, users can make informed decisions and manage their costs effectively while benefiting from the services offered by the Cryptoindex platform.

Fee Structure