Fees and Expenses

If there are expenses associated with operating Neptune, who is responsible for them?

Neptune and its Members are responsible for the costs and expenses related to Neptune's activities, operations, and maintenance, as detailed in the operating agreement. This includes any fees charged by Neptune's service provider and facilitator.

What fees are associated with Neptune?

There are two fees associated with Neptune: an annual fee and additional fees that are applied per strategy. As noted elsewhere in these FAQs, Neptune's organizational documents expressly contemplate the use of third parties (a service provider and a facilitator, and together referred to as the DAO service providers) to implement members' decisions and activity through Neptune.

As compensation for these services, the DAO service providers will collectively charge a 2% fee annually on all contributed capital, which will be divided evenly by Neptune's service provider and facilitator. All fees are payable on a quarterly basis to the service provider and will begin to accrue once Neptune launches.

In addition to the fee schedule outlined above, the DAO service providers shall receive additional fees for each trade or strategy executed by Neptune according to the fee schedule below. The additional fee will be calculated by multiplying the applicable fee percentage listed in the schedule below, depending on the complexity of the trade, by the gross profits in Ether, if any, in respect of such trade or such strategy.

Gross profits shall be determined based on the amount of Ether at the time of such trade or at the commencement and termination of such strategy, as applicable. With respect to trades occurring in a calendar quarter, the additional fees in such calendar quarter shall be aggregated and paid to each of the DAO service providers on the last day of the calendar quarter in which such trade occurred.

With respect to strategies, the additional fees shall be paid to each of the DAO service providers on the last day of the calendar quarter in which such strategy terminates (unless a more frequent time for payment is agreed to by each of the DAO service providers and the DAO, including in connection with the commencement of a strategy). The complexity of a trade or strategy shall be reasonably determined by the DAO service providers, acting together, as “Low,” “Medium,” or “High” in their sole discretion so long as it is disclosed to the DAO via the Dapp prior to execution of the trade or commencement of the strategy.

Third Party	Low	Medium	High
Service Provider	0.5%	1%	2%
Facilitator	1.5%	4%	6%

The DAO service providers have the right to reduce, waive, assign, participate, or otherwise share its respective portion of their fees. They also have the right to modify the fees, if approved by the members via a vote facilitated by the Dapp.