MAGIC Fund Fees

Updated 2021-11-20

MAGIC Grants imposes fees on MAGIC Funds in the following way. MAGIC Grants may make changes to these fees (in its sole discretion) with advance notice including a public feedback period of at least 30 days. Fees may be changed immediately without notice if the changes improve the legal standing of MAGIC Grants.

MAGIC Grants incurs significant costs to manage the investment and grant decisions of MAGIC Fund committees. These fees help MAGIC Grants remain operational.

Asset Administration Fee

Based on daily average assets; fees per year.

Daily Average Assets Asset Administration Fee
$0 - $1 MM 0.50%
$1 MM - $100 MM 1.75%
$100 MM + 1.00%

Example for a Fund with $105 MM in assets every day for a year: 0.5%(1 MM) + 1.75%(100 MM - 1 MM) + 1.00% (105 MM - 100 MM) = 0.005 + 1.7325 MM + 0.05 MM = 1.7875 MM

The minimum annual fee for any MAGIC Fund (unless specifically waived by the board) is $5000. This will be charged at the start of the Fund’s formation and will be charged annually thereafter.

Any fees above the minimum annual fee are levied monthly.

Basic Investment Credits

  • 1 free credit per month
  • Maximum 6 total accumulated credits
  • Additional credits purchasable for $50/credit (subject to board limits)
  • Trade and transaction fees will be passed through at cost

Credits can be used for the following Basic Investments:

  • Select fiat trades to/from cryptocurrencies on Approved Platforms
  • Crypto/crypto trades on Approved Platforms
  • Stock purchases/sales on Approved Platforms
  • NFT purchases/sales on Approved Platforms
  • Anything else MAGIC Grants adds (items may also be removed)

Advanced Investment Options

MAGIC Grants may charge a $100/hr fee for more complicated trading/investment situations, such as liquidity providing or buying/selling NFTs. Trade and transaction fees will be passed through at cost on top of this.

Grant Disbursement Credits

  • 1 free credit per month
  • 1 free additional monthly credit if >$2 MM in daily average assets, and another credit for every $10 MM after that
  • Maximum 6 accumulated credits
  • Additional credits purchasable for $100/credit (subject to board limits)
  • Grant disbursement credits not required for committee disbursements

Credits can be used to make individual grant disbursements.

Committee Disbursement Fees

  • Free

Onboarding Administrative Fee

If a specific Fund would like for MAGIC Grants to onboard with a specific platform for its inclusion as an Approved Platform, MAGIC Grants may charge $100/hr as an onboarding administrative fee. MAGIC Grants can refuse to onboard with any entity for any reason. MAGIC Grants will not reimburse these fees if the attempt is unsuccessful for reasons outside of MAGIC Grants’s control.

Approved Platforms

This list may be updated from time to time without notice. Limits may apply.

  • Kraken
  • Bittrex

Hourly Rates

For all referenced hourly rates, MAGIC Grants will charge a minimum of 1 hour and will round up to the nearest 15 minutes.

Why Fees?

MAGIC Grants spends a lot of time maintaining the necessary paperwork and conducting actions for MAGIC Funds. It is important for the functionality of Funds that MAGIC Grants is able to conduct these efficiently and seamlessly.

MAGIC Grants operates on an extremely lightweight budget. Extra funds from fees go towards further fulfillment of MAGIC Grants’s mission.