Fees

These pages document functionality available to approved participants in our private, invitation-only alpha program. The program is not open to the public, and nothing in this documentation is an offer to sell or a solicitation of an offer to buy any security.

Belief Index supports standard investment fund fee types, modeled on the same structures used by mutual funds and ETFs. This page explains what fees may apply, how they work mechanically, and their current status.

Fee rates are configured per series and are subject to change during the alpha program. Current fee rates for each series are visible in the series details. This page explains the fee types and how they work mechanically.

Fee Types

Belief Index supports three fee types, each serving a distinct purpose:

Management Fee (Expense Ratio)

An annual percentage fee charged against the series’ assets under management (AUM), accrued continuously at each NAV window. This is the same concept as an ETF expense ratio or mutual fund management fee.

Property	Detail
How it works	A small fraction of the annual rate is deducted at each NAV window
Accrual frequency	Every NAV window (not monthly or quarterly)
Effect on investors	Reduces NAV per share gradually over time
Industry comparison	ETFs: 0.03%-1.0%. Mutual funds: 0.5%-2.0% annually
Current rate	Configured per series; subject to change

How management fee accrual works in practice

The annual fee rate is divided across all NAV windows in a year. At each window, a small fraction is accrued as an expense against the series’ assets:

windows_per_year = 365 x 24 x (60 / window_interval_minutes)

For 30-minute windows: 365 x 24 x 2 = 17,520 windows per year

per_window_fee = annual_fee_rate / windows_per_year

Worked example with 1.5% annual fee:

Per-window fee rate:  1.5% / 17,520 = 0.000856%
On $1,000,000 AUM:   $1,000,000 x 0.00000856 = $8.56 per window
Daily (48 windows):   $8.56 x 48 = $410.96 per day
Annual:               $15,000 (= 1.5% of $1M)

The fee is deducted from the NAV before share pricing – investors always see the post-fee NAV. This is identical to how expense ratios work in traditional funds: the fee is embedded in the NAV, not charged separately.

Mint Fee (Front-End Load)

A one-time percentage fee charged on new investments at the time of minting. Deducted from the investment amount before shares are issued.

Property	Detail
How it works	Fee is subtracted from your investment; remainder buys shares
When charged	At NAV window execution, not at order submission
Effect on investors	Fewer shares issued per dollar invested
Industry comparison	Many funds are “no-load.” Loaded funds: 0%-5.75%
Current rate	Configured per series; subject to change

Mint fee calculation

Gross investment:     $1,000.00
Mint fee (0.5%):      $5.00
Net investment:       $995.00
NAV per share:        $10.00
Shares issued:        99.500000

The investor receives 99.5 shares instead of 100. The $5.00 fee covers operational costs associated with acquiring underlying positions – trading fees, gas costs, and market impact in the underlying markets.

Redemption Fee (Back-End Load)

A one-time percentage fee charged on redemption proceeds. Deducted from gross proceeds before cash is credited to the investor.

Property	Detail
How it works	Fee is subtracted from your redemption proceeds
When charged	At NAV window execution, not at order submission
Effect on investors	Slightly less cash received per share redeemed
Industry comparison	Typically 0%-2%
Current rate	Configured per series; subject to change

Redemption fee calculation

Shares redeemed:       100
NAV per share:         $10.00
Gross proceeds:        $1,000.00
Redemption fee (0.5%): $5.00
Net proceeds:          $995.00

The investor receives $995.00 instead of $1,000.00. The fee covers the cost of liquidating underlying positions to generate pUSD proceeds.

Fee Configuration

Fees are configured per series – different series may have different fee structures depending on their underlying market characteristics and operational costs
Fee changes take effect at the next NAV window after the change is made
All fee configurations are visible in the series details
Fee history is maintained for full transparency and auditability

Summary

Fee Type	When Applied	What It Reduces	Current Rate	Industry Range
Management fee	Each NAV window	NAV per share (ongoing)	Per series	0.03% - 2.0% annually
Mint fee	At minting	Investment amount (one-time)	Per series	0% - 5.75%
Redemption fee	At redemption	Redemption proceeds (one-time)	Per series	0% - 2.0%

What Fees Cover

Fees compensate for real operational costs:

Index methodology development – Research, market selection, weight determination, and ongoing monitoring
Custody operations – Wallet security, infrastructure, and operational oversight
Execution costs – Trading fees, gas costs, and market impact when acquiring or liquidating underlying positions
NAV computation – Infrastructure for continuous price monitoring, computation, and publication

Belief Systems reserves the right to introduce, modify, or remove fees at any time. Any changes will be reflected in the series configuration and disclosed to investors. See Disclosures for the complete legal framework.

NAV Per Share

How fees affect your share value over time.

Disclosures

Complete legal disclosures including fee terms.

Minting Shares

How mint fees are applied during the investment process.

Redeeming Shares

How redemption fees are applied during exit.

Getting Started

Understanding Indices

Transparency

Alpha Program

Risk & Legal

Reference

Fee Types

Management Fee (Expense Ratio)

Mint Fee (Front-End Load)

Redemption Fee (Back-End Load)

Fee Configuration

Summary

What Fees Cover

NAV Per Share

Disclosures

Minting Shares

Redeeming Shares

​Fee Types

​Management Fee (Expense Ratio)

​Mint Fee (Front-End Load)

​Redemption Fee (Back-End Load)

​Fee Configuration

​Summary

​What Fees Cover

NAV Per Share

Disclosures

Minting Shares

Redeeming Shares

Fee Types

Management Fee (Expense Ratio)

Mint Fee (Front-End Load)

Redemption Fee (Back-End Load)

Fee Configuration

Summary

What Fees Cover