Treasury Fee

What is the Treasury Fee?

The Treasury Fee consists of a fixed rate and a variable rate. The fixed rate is a 3% base rate and the variable rate is equal to the actual DUCA Yield. The variable rate is variable because the DUCA Yield is variable but also because the actual % used for the Treasury Fee is depending on the actual retracement level. The result is that the more the DCM Market Value moves towards the Par Value the lower the discount and the higher the fee.

The Treasury Fee is applicable to both the Stability Pool and the DCM owners which means it is charged to the circulating supply of DCM.

TREASURY FEE

$\normalsize \mathrm{Treasury\ Fee\ \%} = 3\% \ \mathrm{Base\ rate} + (\mathrm{DUCA\ Yield\ \%} - (\mathrm{DUCA\ Yield\ \%} \times \mathrm{actual\ retracement}))$