Fees, treasury and burn

PUTGO charges nothing to enter, wait, renew or claim. The Money Pool never pays a fee. The only fee is the settlement fee the Asset Pool pays out of its proceeds when matched PONS is physically delivered for USDG.

When a fee applies

• The series settles at or below the target, and
• the PONS in question was matched and delivered.

The Asset Pool pays 0.9% of matched notional, in USDG, deducted directly from the USDG it receives at delivery. Nothing has to be reserved up front.

No fee applies to:

• the Money Pool, in any outcome;
• a series that settles above the target;
• unmatched balances;
• switching Auto-Renew on or off;
• claiming original assets, delivery proceeds or PUT.

Where the fees go

Physical delivery
→ Asset side pays 0.9% of matched notional, in USDG
→ Protocol Treasury Fee Reserve
→ Manual trigger by an authorized operator
→ Atomic buyback and burn of PUT in one transaction
→ PUT supply goes down

• Fees accrue in a segregated Treasury Fee Reserve, never mixed with other treasury funds. Nothing happens automatically.
• An authorized operator decides when a buyback runs and how much of the reserve it uses. There is no fixed schedule.
• Buyback and burn execute in one atomic transaction: both steps succeed together, or the whole transaction reverts and the USDG stays in the reserve.
• PUT bought this way is always burned. It is never redistributed.
• Settlement fees can only be used for buyback and burn, never for anything else.

Transparency

After launch the following figures will be published:

• cumulative settlement fees collected;
• current balance of the Treasury Fee Reserve;
• cumulative USDG used for buyback and burn;
• cumulative PUT burned;
• current total supply of PUT.

Example

Matched notional 540,000 USDG.

Money Pool fee	0
Asset Pool fee	4,860 USDG
To Treasury Fee Reserve	4,860 USDG

All figures are illustrative.