Fees
Every fee comes out of rent before it reaches the vault, and every fee is a line in the Roll.
The seven cost lines
Every Roll has the same seven cost lines, in this order, including in months where a line is zero. The first five are property costs. The last two are the vault's own fees.
| Line | Roll key | Rate | Charged on |
|---|---|---|---|
| Repairs and upkeep | repairs | Actual spend | What the operator spent on repairs and upkeep in the month. |
| Capital works | capital_works | Actual spend | Larger works such as a roof or a boiler, expensed in full in the month they are paid. Nothing is spread over later months. |
| Property tax | property_tax | 0.95% a year, one twelfth each month | Appraised value of all buildings at the start of the month. |
| Insurance | insurance | 0.32% a year, one twelfth each month | Appraised value of all buildings at the start of the month. |
| Property manager | property_manager | 7% | Rent collected in the month, including late rent recovered from earlier months. |
| Vault management | vault_management | 0.75% a year, one twelfth each month | USDG the vault holds at the close, before the month's rent is settled. |
| Vault performance | vault_performance | 10% | Rent collected plus rent recovered, minus the five property cost lines. Zero when that is negative. |
These rates are the defaults in the close engine (DEFAULT_FEES in site/js/close.js), and the operator can change them. A change would show in the amounts on every Roll that follows.
No deposit or cash-out fee
Depositing and cashing out cost nothing beyond gas. At an unchanged price, the only difference between what you put in and what you take out is ERC-4626 rounding of at most 0.000001 USDG, and that fraction stays in the vault.
Worked example
Sample month 1, from the sample portfolio: five buildings appraised at 4,430,000 USDG in total, and a vault holding 4,500,000 USDG. Of 34 apartments, 32 paid, one was late and one was vacant. These are illustrative figures, not results.
| Line | Calculation | USDG |
|---|---|---|
| Rent collected | Lease rent of the 32 paid apartments | 40,205.000000 |
| Repairs and upkeep | Actual spend | 2,310.000000 |
| Capital works | None this month | 0.000000 |
| Property tax | 4,430,000 × 0.95% ÷ 12 | 3,507.083333 |
| Insurance | 4,430,000 × 0.32% ÷ 12 | 1,181.333333 |
| Property manager | 40,205 × 7% | 2,814.350000 |
| Vault management | 4,500,000 × 0.75% ÷ 12 | 2,812.500000 |
| Vault performance | (40,205 - 9,812.766666) × 10% | 3,039.223333 |
| Net rent to the vault | 40,205 - 15,664.489999 | 24,540.510001 |
The five property cost lines total 9,812.766666 USDG, which leaves 30,392.233334 as the performance-fee base. All seven lines total 15,664.489999 USDG. Settling the net rent moved the sample price from 1.000000000000 to 1.005453446666.
Rules
- Fees come out of rent, never out of principal. The vault contract has no function that pays a fee from its USDG. Every fee is deducted from rent before the transfer. In a month where rent does not cover costs, the unpaid fees become part of the shortfall that later rent repays.
- The performance fee has a floor of zero and no carry-forward. A month with property costs above rent pays no performance fee, and the next month is charged on its own figures. In sample month 5 the performance fee was 3,383.978333 USDG while the month 4 shortfall was still being repaid.
- Token fees are outside the performance-fee base. The USDG from $RENT trading goes into the vault whole, with no cost line taken from it. Charging a fee on trading volume would reward the operator for churn in the token.