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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.

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Fee Types

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

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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.
PropertyDetail
How it worksA small fraction of the annual rate is deducted at each NAV window
Accrual frequencyEvery NAV window (not monthly or quarterly)
Effect on investorsReduces NAV per share gradually over time
Industry comparisonETFs: 0.03%-1.0%. Mutual funds: 0.5%-2.0% annually
Current rateConfigured per series; subject to change
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.

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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.
PropertyDetail
How it worksFee is subtracted from your investment; remainder buys shares
When chargedAt NAV window execution, not at order submission
Effect on investorsFewer shares issued per dollar invested
Industry comparisonMany funds are “no-load.” Loaded funds: 0%-5.75%
Current rateConfigured per series; subject to change
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.

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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.
PropertyDetail
How it worksFee is subtracted from your redemption proceeds
When chargedAt NAV window execution, not at order submission
Effect on investorsSlightly less cash received per share redeemed
Industry comparisonTypically 0%-2%
Current rateConfigured per series; subject to change
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 USDC proceeds.

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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

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Summary

Fee TypeWhen AppliedWhat It ReducesCurrent RateIndustry Range
Management feeEach NAV windowNAV per share (ongoing)Per series0.03% - 2.0% annually
Mint feeAt mintingInvestment amount (one-time)Per series0% - 5.75%
Redemption feeAt redemptionRedemption proceeds (one-time)Per series0% - 2.0%

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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.