Fees

The protocol earns fees through two primary means:

• Fees on minting and redemption: currently set at zero; any future change will be communicated on official channels

• Performance fees (share of yield generated by the protocol):

  • Mu Digital applies a performance-based fee designed to align the protocol’s incentives with users

  • The protocol earns fees only when users earn yield. A 10% performance fee is applied to realized net yield generated by Mu Digital strategies

  • For example, if a strategy generates 10% net annual yield, Mu Digital retains 1%, and users receive 9%

• There are no management fees and no fees on principal

Fees earned by the protocol will be used to deliver value to stakeholders and users including, but not limited to:

• Insurance Fund: build up a liquidity buffer to further support the protocol

• Ecosystem Growth: support integrations, partnerships, and other ecosystem initiatives

• Token Buybacks: strategic buybacks in the future, post any potential Token Generation Event (“TGE”)