Understanding Commissions in Tokenized Investments

Commissions and fees are an integral part of investment platforms, and Restifi is no exception. Understanding these fees is crucial for investors to make informed decisions and accurately assess their potential returns. This article breaks down the various types of commissions associated with tokenized investments on the Restifi platform.

1. Initial Listing Fee and Fundraising Commission

Initial Listing Fee

• Charged to projects or companies seeking to list their tokenized assets on the Restifi platform.

• Covers the costs associated with the initial evaluation, due diligence, and setup for new listings.

Fundraising Commission

• A fee applied to the total amount raised through the platform.

• This commission is a percentage of the funds raised, compensating Restifi for facilitating the fundraising process.

2. Secondary Market Fee

• This fee is applied to transactions on the Restifi secondary market.

• It's a fixed percentage (e.g., 2%) of the transaction value, charged when investors buy or sell tokenized assets on the secondary market.

• This fee covers the platform's operational costs and ensures ongoing support and development of the secondary market.

3. Management Fee

• Management fees are charged for the ongoing administration and management of tokenized investments.

• These fees cover services provided by partners, accountants, legal advisors, and Special Purpose Vehicle (SPV) management.

• They are typically calculated as a percentage of the investment's value and are charged periodically (e.g., annually).

4. Carry Fee (Carried Interest)

• The carry fee, or carried interest, is a share of the profits earned from the investment.

• It's only applicable when investments achieve a certain level of profitability, aligning the interests of the management team with those of the investors.

• This fee is a percentage of the profits and is paid out only after investors receive their initial capital and agreed-upon returns.

5. Fee on Lending Protocol

• When utilizing lending protocols (as part of strategies like YieldBooster), a fee is charged on the borrowed amount.

• This fee is akin to interest on a loan and varies based on market conditions and the specifics of the lending protocol.

• It's crucial for investors using leveraged strategies to be aware of these fees as they can impact the overall return on investment.

Understanding the Impact of Fees

• While these fees are necessary for the operation and maintenance of the Restifi platform, it's important for investors to consider them when calculating potential returns.

• Transparent fee structures allow investors to fully understand their investment costs and make informed decisions.

Restifi is committed to maintaining a transparent and fair fee structure, ensuring that our investors have a clear understanding of all costs associated with their tokenized investments. These commissions are essential for providing a secure, efficient, and compliant investment platform, ultimately benefiting the investor community by fostering a sustainable and thriving ecosystem for tokenized assets.