Performance Fee Mechanics

Operator & jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles-incorporated entity (LEI: 254900IX2F2KCWNSSS64).

Currency convention: All balances may be displayed in USDT as an internal accounting and reporting unit. USDT is not a depositable or withdrawable asset on BASIS. Deposits and withdrawals are supported in native assets only: BTC, ETH, SOL, and PAXG.

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Fee Structure Summary

Fee Type	Rate	When Applied
Performance Fee	20% of net profit	Deducted before reward distribution to staking positions
Management Fee	0%	Never charged
Deposit Fee	0%	Never charged
Swap Fee	0.01%	On same-token 1:1 conversion
Withdrawal Fee	0.05%	On withdrawal

Supported same-token swaps only:

• BTC → stBTC

• ETH → stETH

• SOL → stSOL

• PAXG → stPAXG

There is no cross-asset swap function.

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How the Performance Fee Is Calculated

$$\text{Net Yield} = \text{Gross Yield} - \text{Execution Costs}$$

$$\text{Performance Fee} = \text{Net Yield} \times 20\%$$

$$\text{User Distribution} = \text{Net Yield} \times 80\%$$

Component	Description
Gross Yield	Funding payments, basis spreads, structural alpha capture, and protocol-native yield sources
Execution Costs	Exchange fees, slippage, gas, hedging overhead, and routing costs
Net Yield	Yield available for distribution after costs

Rewards accumulate in real time as the same stToken in the Staking Wallet.

We apply the performance fee before rewards are credited to staking positions.

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Worked Example

ETH example

Assumptions:

• User deposits 10 ETH through a connected Web3 wallet

• ETH is swapped 1:1 to stETH

• Position is staked for a 30-day period

• Entry reference value: 30,000 USDT-equivalent

• Gross yield for the period: 600 USDT-equivalent

• Execution costs: 120 USDT-equivalent

Step	Calculation	Amount
Gross yield	600	600
Execution costs	-120	-120
Net yield	600 - 120	480
Performance fee (20%)	480 × 20%	-96
User receives	480 × 80%	384
Net return to user	384 / 30,000	1.28% over 30 days

90D booster example

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Why Performance Fees Align Incentives

A performance fee aligns operator economics with realized user outcomes more closely than an asset-based management fee.

Fee Type	Operator Earns When	User Outcome
Management fee	Assets remain deposited, regardless of performance	Operator may earn during flat or negative periods
Performance fee	Platform generates positive net yield	Operator earns only when users earn

BASIS charges 0% management fee and 20% performance fee only.

This means:

• If net yield is zero, no performance fee is charged

• If net yield is negative, no performance fee is charged

• Operator compensation depends on positive realized performance, not simply asset growth

This model is supported by deterministic execution, mathematical portfolio constraints, and state-machine-based risk controls across the BASIS execution stack.

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High-Water Mark

A high-water mark means performance fees apply only to new net profits above the previous peak.

If a pool declines below its prior high-water level and later recovers, performance fees are charged only on gains above that previous peak. Recovery back to the earlier level is not charged again.

BASIS applies high-water mark logic on a pool-cycle basis. If positions are rolled across cycles, refer to the relevant pool documentation for cycle reset handling.

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Operational Context

BASIS combines research from Base58 Labs with proprietary routing and execution infrastructure designed for:

• Sub-50μs latency

• 100K+ OPS throughput

• Deterministic execution quality

• Structural alpha capture under strict risk constraints

These controls are intended to reduce avoidable execution loss and preserve execution precision across staking-related yield strategies.

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Related References

• Fee Calculator

• Fees & Limits

• Booster System