Fees
Every fee is priced in ETH and most of it leaves for the stock market.
This page is the whole revenue model. There is no hidden allocation, no deployer wallet on the receiving end, and no fee on moving your own tokens between your own wallets.
Schedule
What each action costs
Rates apply to the ETH leg of a market trade. A 3% fee on a 1 ETH swap is 0.0300 ETH.
| Action | Rate | Fee on 1 ETH | Where it is taken |
|---|---|---|---|
| Buy | 3.00% | 0.0300 ETH | Charged on the ETH leg of the swap, before the token is delivered. |
| Sell | 3.00% | 0.0300 ETH | Charged on the ETH proceeds of the swap, before they reach the seller. |
| Transfer | 0.00% | — | Wallet-to-wallet transfers are untaxed. Only market trades pay. |
Denomination
Why the fee is pegged to ETH, not to BANK
This is the single decision the whole design rests on. Four reasons, in order of how much they matter.
The reserve keeps buying in a drawdown
A fee taken in BANK shrinks in dollar terms exactly when the token is falling — the moment the reserve most wants purchasing power. An ETH-denominated fee is indifferent to what BANK is doing.
No reflexive sell pressure
Tax tokens that collect in their own supply have to sell that supply to raise cash. The router never touches BANK, so funding a purchase never adds sell pressure to the pool.
The broker only speaks in dollars
Equity settles in USD. ETH is the deepest crypto asset with reliable fiat rails, so the conversion path from fee to filled order is short and quotable in advance.
Accounting stays legible
One unit in, one unit out. Every batch can be stated as 'x ETH became y shares at an average of z dollars', which is the only claim the protocol ever needs to prove.
Allocation
70% of collected ETH becomes HOOD
The split is one on-chain parameter behind a timelock, exported from a single constant in the codebase so the site and the contract can never disagree. Changes are described in governance.
- HOOD purchases70%
- Converted to USD and spent on Robinhood common stock through the brokerage adapter.
- Liquidity15%
- Paired and locked into the primary BANK pool to keep the market tradable at size.
- Operations & brokerage10%
- Commissions, custody, attestation costs, indexer and relayer gas for distributions.
- Treasury buffer5%
- Held in ETH to smooth distributions across weekends and Nasdaq holidays.
Cadence
From fee to filled order to your wallet
Fees batch continuously, purchases execute during market hours, and claims are always open on a five-minute cycle.
Collection
Every trade adds ETH to the router. The balance is public and the batch clears once it exceeds 0.25 ETH.
Execution
The adapter converts to USD and buys HOOD, recording share count and average fill price on-chain.
Distribution
Holders accrue pro rata and can claim on a rolling window. Unclaimed accrual never expires.
Estimate
Run the numbers
Enter a trade size and the share of supply you hold to see what a single trade contributes and what lands in your accrual.
Fee calculator
IllustrativeNotional value of a single market buy or sell.
Percentage of total BANK supply you hold at the snapshot.
Marks: $3,140 per ETH, $94.91 per HOOD share. Real fills depend on the price at execution, commissions and slippage on the ETH-to-USD conversion.
This fee is below the 0.25 ETH batch threshold on its own, so it waits in the router until enough volume accumulates. Nothing is lost, it just settles in a later batch.
Edge cases
What happens when the market will not cooperate
A protocol that buys listed equity inherits the equity market's calendar and its interruptions. These are the cases we handle explicitly rather than pretend away.
Handling
- Outside regular trading hours
- Fees keep arriving and pool in ETH. No order is placed until Nasdaq opens. Accrual for holders continues on schedule so the 5-minute cadence is unaffected; the shares backing it are purchased on the next open.
- Nasdaq holidays and weekends
- The treasury buffer covers the gap so distribution size does not lurch around the calendar. In practice most of a week's fees are collected while the market is shut, which is why the buffer exists at all.
- The stock is halted
- The brokerage adapter refuses to submit during a halt. ETH waits. If the halt is a limit-up or limit-down band, the adapter also enforces a price collar so the reserve is not filled at a distressed print.
- The batch is under 0.25 ETH
- No order is placed. Commissions and gas would consume too much of a small batch, so it rolls into the next one. The router's balance is public, so the pending amount is always visible.
- The ETH-to-USD conversion slips
- The adapter quotes before it converts and aborts if realised slippage exceeds the configured tolerance. A failed conversion leaves the ETH untouched and retries on the next cycle.
- A distribution transaction reverts
- Accrual is recorded in the distributor's accounting, not in the transfer itself. A failed payout does not destroy the entitlement — the holder simply claims it in a later window.