Management Fees

Management fees are the ongoing costs charged by the protocol or fund manager for the service of maintaining and operating the leveraged token. These fees are typically expressed as an annual percentage of the assets under management and are deducted proportionally from the token's value over time.

While they may seem small on a daily basis, they contribute to the overall drag on the token's performance. These fees cover the operational costs of the protocol, including smart contract maintenance, oracle services, and infrastructure costs.

Investors must account for these fees when calculating their expected returns, as they are a guaranteed cost regardless of market performance. They are a standard feature of almost all structured financial products.