Economics

One fee. Scales down as the basket scales up.

A single all in annual fee covers the entire institutional stack: issuer, custodian, NAV agent, auditor, and Navmont. No separate management fee. No performance fee. The rate steps down at fixed AUM thresholds and the benefit is passed through to every holder.

The fee schedule

• Launch tier (up to $500M AUM): 100 bps all in. Covers fixed-cost infrastructure that does not scale with AUM (Big 4 audit, legal, insurance, vendor minimums).
• Growth tier ($500M to $1B AUM): 75 bps all in. Vendor pricing compresses, fixed costs amortize, the saving is passed through.
• Scale tier (above $1B AUM): 50 bps all in. The destination fee. Comparable to the largest tokenized treasury and money market funds.

The step-downs apply automatically on the first NAV strike of the month after the threshold is crossed and reported in the monthly investor letter. The schedule is published on chain alongside the methodology.

Background

Standard private fund pricing is two and twenty plus feeder layers, often pushing all in cost above 3% per annum and 25 to 30% of profits. For a 10 to 12% gross yield product, that consumes a third of the income. The illiquidity premium meant for the investor flows to the manager.

Comparable regulated tokenized fund stacks (issuer + qualified custodian + NAV agent + Big 4 audit + active management) run 80 to 120 bps in management plus a performance share. Navmont consolidates it to one line and gives back the scale economics as AUM grows.

What the basket fee covers

• Superstate FundOS. Token issuance, share register, allowlist enforcement.
• Anchorage Digital. Qualified custody for tokenized private fund positions.
• NAV Fund Services. Daily NAV strike across all sleeves.
• Ernst & Young LLP. Annual audit, quarterly review.
• Legal and compliance. Reg D 506(c) and Reg S counsel, transfer agent functions.
• Insurance. D&O, E&O, fidelity bond.
• Navmont. Allocation, hedging, operations, working margin.

The basket pays third parties at their published rates. Navmont keeps the residual.

How Navmont also earns

Beyond the basket fee, Navmont earns from activity that holders opt into. Disclosed, opt in, never asymmetric.

• Lending pool spread. Holders LP USDC into the borrow pool. Borrowers pay the borrow rate. LPs earn the supply rate. Navmont keeps a portion of the spread.
• Margin financing spread. Leveraged share class pays an internal margin rate. Navmont pays Alpaca for the underlying margin. Spread is the revenue.
• Securities lending rebate share. When Alpaca lends out basket stocks, the rebate is split. Most flows back to basket NAV; a small share to Navmont.

The unleveraged, non LP holder pays only the basket fee and the hedge premium netted into yield. The activity revenue scales only when holders actively choose to use it.

What you actually pay

• Basket fee. 100 bps at launch, stepping down to 75 bps at $500M AUM and 50 bps at $1B AUM. Single all in line on the NAV.
• Hedge premium. Cost of the per position puts, put spreads, and underperformance options. Netted continuously into displayed yield.
• Underlying fund fees. Set by the issuer of each tokenized underlying. Reflected in each position's yield. Navmont does not layer on top.

Why this shape

The basket fee covers the regulated infrastructure that does not vanish at scale: a Big 4 auditor still costs the same in absolute dollars whether the basket is $100M or $1B. At launch, 100 bps honestly reflects that load. As AUM grows, that load shrinks per dollar and the fee follows it down.

Activity revenue is float. Spread on the lending pool, spread on margin, a share of securities lending rebate. Navmont earns when holders actively put their balance to work, not when the basket performs poorly or when holders trade more. There is no fee that wins when holders lose.