Our platform introduces an Enhanced Subscription Model, which integrates advanced investor input options and diversified fee structures. This feature is designed to offer issuers and investors a more tailored and efficient investment experience. In this article we will outline both the types of investor inputs and fee schema’s we can accommodate.
Tailored Investor Input Methods
To cater to diverse investment strategies, we've expanded the investor input methods. Issuers now have the flexibility to select the most suitable option:
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Token Quantity: The traditional method, allowing investors to simply specify the number of tokens they wish to purchase with the system calculating the appropriate amount to pay considering the price.
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Net Investment Amount: The investor defines the quantity of money that wish to invest (without fees)
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Amount to pay (gross investment) The investor defines the quantity of money that wish to invest, including the fees
Fee Structures
Our platform now supports various fee types to match different investment approaches:
Fixed Fee: A stable, pre-set fee, independent of token quantity or investment amount.
Total Payable = Investment Amount + Fixed Fee
Percentage Fee on Total Payable: A dynamic fee calculated as a percentage of the total amount payable.
Total Payable = Investment Amount + (Total Payable × Percentage Fee)
Percentage Fee on Investment Amount: A fee based on a percentage of the net investment amount.
Total Payable = Investment Amount × (1 + Percentage Fee)
Detailed explanation of Investor Inputs
Below , you can find a more detailed explanation of investor inputs and how they interact with the different fee methods.
Investor Inputs Token Quantity: In this scenario, the investor starts by specifying the number of tokens they wish to purchase. For example, if they choose to buy 100 tokens at an investment amount of $500:
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With a Fixed Fee method, a flat fee (e.g., $20) is added, making the total amount payable $520.
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With a Percentage of Amount to Pay method, the fee is a percentage of the final payable amount.
For instance, if this percentage is 11.11% (to make the math easy), the fee would be $55.56, leading to a total payment of $555.56. -
With a Percentage of Investment Amount method, the fee is a percentage of the $500 investment. If this is 10%, the fee would be $50, totalling $550.
Investor Inputs Investment Amount: When the investor chooses the investment amount first, the process is similar to the above, but the token quantity is predetermined. The amount in this instance refers to the token amount. For instance, if investing $500 for 100 tokens:
The Fixed Fee remains at $20, making the total $520.
The Percentage of Amount to Pay at 11.11% leads to a fee of $55.56 and a total of $555.56.
The Percentage of Investment Amount at 10% leads to a fee of $50 and a total of $550.
Investor Inputs Amount to Pay: In this case, the investor specifies the total amount they are willing to pay, and the system adjusts the token quantity and investment amount accordingly. For a total payment of $500:
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With a Fixed Fee of $20, the system calculates the investment amount as $480 for 96 tokens.
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With a Percentage of Amount to Pay at 11%, the investment amount is adjusted to $444.44 for 89 tokens, as the fee becomes $55.56.
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With a Percentage of Investment Amount at 10%, the investment amount is slightly higher ($454.55 for about 90.91 tokens) as the fee is calculated based on this amount, leading to a total of $500.
Each of these options offers unique advantages, catering to different investment strategies and preferences. They provide transparency in fee calculations and flexibility in investment decisions, ensuring a user-friendly experience.
Below you can find a table explaining the above.
|
Investor inputs token quantity |
Fee method |
|||
|
Fixed |
% amount to pay |
% investment amount |
||
|
Inputs/outputs |
Token quantity |
100 |
100 |
100 |
|
Investment amount |
500 |
500 |
500 |
|
|
Fee |
20 |
55.55555556 |
50 |
|
|
Amount to pay |
520 |
555.5555556 |
550 |
|
|
|
|
|
|
|
|
Investor inputs investment amount |
Fee method |
|||
|
Fixed |
% amount to pay |
% investment amount |
||
|
Inputs/outputs |
Token quantity |
100 |
100 |
100 |
|
Investment amount |
500 |
500 |
500 |
|
|
Fee |
20 |
55.55555556 |
50 |
|
|
Amount to pay |
520 |
555.5555556 |
550 |
|
|
|
|
|
|
|
|
Investor inputs amount to pay |
Fee method |
|||
|
Fixed |
% amount to pay |
investment amount |
||
|
Inputs/outputs |
Token quantity |
96 |
90 |
90.90909091 |
|
Investment amount |
480 |
450 |
454.5454545 |
|
|
Fee |
20 |
50 |
45.45454545 |
|
|
Amount to pay |
500 |
500 |
500 |
|
Selecting the Appropriate Fee Schema
Choosing the right fee structure is crucial and should align with your investment product's nature and strategy:
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Fixed Fee: Ideal for those seeking a predictable fee structure.
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Percentage on Total Payable: Best suited for investments where fee alignment with the overall investment value is preferred.
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Percentage on Investment Amount: Optimal for investments where fees are desired to be proportional to the net investment.
Configuration
Contact your Customer Success Manager or the Support team for more information.