Index Holders Fees

All fees on the platform are presented in the Fee Structure 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
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.