Protocol
Fees
Every MEME500 fee and its split between lockers, creators, the buyback wallet and the treasury, the planned MTF pool fee (TBA), and a worked example for a 1 ETH ape.
Fee schedule#
| Fee | MEME500 | User-built indexes (planned) |
|---|---|---|
| Ape fee | 0.30% | 0.10% to 1.00%, set by the creator |
| Redeem fee | 0.30%, taken in MEME500 before redeeming | same as the ape fee |
| Yearly fee | 1.00% per year | 0% to 2.00% per year, set by the creator |
| Underlying pool fee | 0.3% per leg (Uniswap V2 / ShibaSwap) | 0.3% per leg |
The yearly fee is streamed continuously by minting a small amount of new index tokens, so it shows up as a slow reduction in NAV per token rather than a charge on your wallet.
How fees are split#
Where the ape and redeem fee goes.
Text version
- The 0.30% ape and redeem fee is split four ways.
- 40% goes to lockers of that index: it is aped into MEME500 without a fee and streamed to lockers over 6 hours.
- 25% goes to the index creator. For MEME500 the creator share goes to the treasury.
- 15% goes to the public buyback wallet. Once MTF launches, it is used to buy back and burn MTF manually.
- 20% goes to the treasury.
| Split | Lockers | Creator | Buyback wallet | Treasury |
|---|---|---|---|---|
| Ape and redeem fee | 40% | 25% | 15% | 20% |
| Yearly fee | none | 25% | 25% | 50% |
| Early exit penalty | 100% to the remaining lockers, streamed over 7 days | none | none | none |
- MEME500's creator share goes to the treasury, because MEME500 is the official index.
- The sell fee is taken in index shares before the basket is sold, so it applies even when a leg is delivered in kind.
- The locker share is converted without a fee. The lockers' 40% of ape fees is aped into MEME500 by a keeper with no ape fee charged, at most once per block per index and with a minimum output, so lockers receive the full value. The lockers' 40% of redeem fees is already in MEME500 shares.
- The buyback share goes to a buyback wallet. It accrues to a dedicated public buyback wallet set at deploy; changing it requires a 48h timelock. Once MTF launches (TBA), the team uses it to buy back and burn MTF, manually and at its discretion; every burn will be on-chain and verifiable.
- Rewards that arrive while nobody is locked go to the treasury instead of being captured by the next lock.
MTF pool fees#
MTF is not launched yet. Its pool is planned with a 1% fee that funds the treasury, the MEME500 backing wallet and MTF buybacks; the exact split and how sells are charged are TBA and will be published with the contract. See MTF token.
Worked example: a 1 ETH ape#
| Item | ETH |
|---|---|
| You send | 1.000000 |
| Ape fee (0.30%) | 0.003000 |
| of which lockers (40%), aped into MEME500 | 0.001200 |
| of which creator share, to treasury for MEME500 (25%) | 0.000750 |
| of which buyback wallet (15%) | 0.000450 |
| of which treasury (20%) | 0.000600 |
| Spent on the basket | 0.997000 |
| PEPE 35%, SHIB 35%, SPX6900 18%, MOG 7%, NEIRO 5% | 0.34895 / 0.34895 / 0.17946 / 0.06979 / 0.04985 |