Fee Structure
Collective's fee model is designed to align vendor incentives with funder success.
Performance Fee
Vendors earn a percentage of profits. This is only charged when the vault increases in value.
Rate
20% of profits
Timing
Charged at epoch end
High-water mark
Yes — fees only on new highs
High-Water Mark Explained
The high-water mark protects funders from paying fees on recovery:
Vault peaks at $120,000 — vendor takes 20% of $20,000 profit = $4,000
Vault drops to $100,000 — no fee (it's a loss)
Vault recovers to $115,000 — no fee (still below $120,000 high)
Vault grows to $130,000 — vendor takes 20% of $10,000 (new profit above $120k) = $2,000
This ensures vendors only profit when funders profit.
Management Fee
None. We don't charge a percentage of assets under management. Vendors only earn when they perform.
Operating Costs
Vendors incur real costs running the operation. These are passed through to the vault:
Shows
Travel, hotels, table fees
Grading
PSA/CGC submission fees
Shipping
Insured shipping for purchases/sales
Storage
Secure storage facilities
Insurance
Inventory insurance premiums
Guardrails
To prevent abuse:
Operating costs are reported monthly with itemization
Annual cap: [X]% of average vault value
Large expenses (>$1,000) require advance disclosure
All costs visible to funders in reports
Withdrawal Fees
Standard (end of epoch)
0%
Emergency (mid-epoch)
3%
The emergency fee compensates remaining funders for the disruption of forced liquidation.
Platform Fee
Collective (the platform) takes a small fee to cover infrastructure and development:
Platform fee
[X]% of vault value annually
This is separate from vendor fees and covers:
Smart contract maintenance
Platform development
Support and operations
Fee Summary
Performance
Vendor
20% of profits
Management
—
None
Operating costs
Vendor (pass-through)
Variable, capped
Emergency withdrawal
Vault (remaining funders)
3%
Platform
Collective
[X]% annually
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