We make a profit through a second type of rebasing which decreases the number of Boring Tokens by 0.1% once per month. This decreases our total obligation to Token holders relative to the value of the ETFs held, resulting in a spread. This spread is our profit. Over a full year, it is the equivalent of a fee of approximately 1.2% (slightly less due to compounding).
We also charge a one-time fee of 1,000 USDC or 1,000 Boring Tokens to verify the identities of our clients who wish to purchase or redeem Boring Tokens directly from us. This fee is charged per client, regardless of the number of addresses whitelisted or the number of Tokens subsequently purchased or redeemed.
The fees above are inclusive of all costs. Boring Tokens rebase to track the performance of the MSCI World Index, not the underlying ETFs. As a result, all fees charged by iShares or other intermediaries are borne by us.