Fee Structure

Fees are settled by minting new share tokens (share dilution). No USDC is deducted from depositor balances. Accrual is continuous; collection happens when collect_fees runs.

Who can call collect_fees: Alpha, Neutral, and Defense — permissionless (any signer pays the tx). New shares mint to the fund’s fee-recipient ATA; the caller cannot redirect fees.

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Fee Rates

Keystone Alpha Fund

Fee	Rate	Basis
Management	0.5% per year	Total shares outstanding, time-accrued
Performance	20%	Share price gains above the high-water mark
Rebalancing	0.1%	Notional value moved per rebalance

Keystone Neutral Fund

Fee	Rate	Basis
Management	0.5% per year	Total shares outstanding, time-accrued
Performance	20%	Share price gains above the high-water mark

Keystone Defense Fund

Fee	Rate	Basis
Management	0%	—
Performance	20%	Share price gains above the high-water mark

No management fee. Defense spends most of its time in a passive baseline state (JupSOL staking + Marginfi lending) waiting for deployment conditions. Charging a recurring management fee on capital that is largely idle would eat into the staking yield that is meant to accrue to depositors. The fund earns only when it generates alpha — via the performance fee on new highs above the high-water mark.

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Examples

Management fee on $10,000 (Alpha and Neutral only):

• Annual: ~$50 (0.5%)

• 30-day accrual: ~$4.11

Performance fee:

• Deposit when share price = $1.00; share price rises to $1.50

• Fee: 20% × $0.50 = $0.10 per share

• Net gain to depositor: $0.40 per share (80% of gains)

Rebalancing fee (Keystone Alpha Fund only):

• Fund moves $100,000 from USDC to jitoSOL

• Fee: 0.1% × $100,000 = $100

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Fee Calculation

Management Fee

elapsed = now - last_fee_collection
annual_fraction = elapsed / seconds_per_year
fee_shares = total_shares × (management_fee_bps / 10000) × annual_fraction

Performance Fee

Charged only on net-new gains above the high-water mark. The high-water mark starts at 1.0 and resets upward only — no performance fee is charged during recovery from a drawdown.

if share_price > high_watermark:
  gain = share_price - high_watermark
  fee_shares = total_shares × (gain / share_price) × (performance_fee_bps / 10000)
  high_watermark = share_price

Rebalancing Fee (Keystone Alpha Fund)

notional_change = |new_allocation - old_allocation| × approximate_nav
fee = notional_change × (rebalancing_fee_bps / 10000)

Lending-Aware NAV (Keystone Alpha Fund)

During collect_fees, the fund reads the real Marginfi lending balance (including accrued interest) from on-chain state:

real_lending_balance = asset_shares × asset_share_value

This ensures performance fees are calculated against actual lending yield, not the tracked principal alone.

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Revenue Projections

TVL	Management	Performance (est.)	Rebalancing (est.)	Total (est.)
$1M	$5K	$5K–$20K	$1K–$5K	$11K–$30K
$10M	$50K	$50K–$200K	$10K–$50K	$110K–$300K
$100M	$500K	$500K–$2M	$100K–$500K	$1.1M–$3M

Performance estimates assume 5–15% annual returns. Rebalancing estimates assume weekly execution.