Automated Fee Collection

The Nestor Protocol streamlines fund operations by automating fee collection structures, including management and performance fees.

Key Features

Smart contracts can automatically collect fees during value exchange functions, creating new revenue opportunities while maintaining transparency for both managers and investors.

Fee Collection Scenarios

The protocol supports fee collection across five transaction types:

1. P2P Transfers — Direct token transfers between authorized parties (secondary trades)
2. Securities Exchange — Management fees collected during primary issuance on committed or deployed capital
3. Settlement — Fees during protocol or investor-executed security settlements
4. ERC20 Conversion — When converting standard tokens to NestorFundDepositTokens
5. FX Swaps — Currency conversion between different NestorFundDepositTokens

Administration

The protocol admin establishes fees to maintain market integrity, including determining FX rates from partner sources and managing stablecoin conversions (USDC, USDT) to their fund token equivalents.