> ## Documentation Index
> Fetch the complete documentation index at: https://docs.beliefsystems.xyz/llms.txt
> Use this file to discover all available pages before exploring further.
# Fees
> Fee structure for Belief Index series – types of fees, how they're applied, and current status.
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 |
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 |
```
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 |
```
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](/risk/disclosures) for the complete legal framework.
How fees affect your share value over time.
Complete legal disclosures including fee terms.
How mint fees are applied during the investment process.
How redemption fees are applied during exit.