Income, Fees & Yield

Income

The Fund invests exclusively in short-duration U.S. Government Securities, including investments in U.S. Treasury Bills. Interest income from these securities is recognized each market day and is reflected in the Fund's NAV.

A market day is each day that both the New York Stock Exchange and the Federal Reserve Bank of Philadelphia are open. Each market day starts at 9:00am ET on a given day that NYSE and FRBP are open and continues until 8:59am ET the next day that NYSE and FRBP are open.

Fees

The Fund incurs certain expenses necessary for daily operations, including custodial, administrative, and audit fees, and pays a 15bps management fee to the Investment Manager. These expenses are accrued each market day and are reflected in the Fund's NAV.

The Investment Manager has elected to waive the management fee and cover all fund expenses until the Fund's AUM exceeds $200MM. Until that threshold is reached, investors incur no expenses.

NAV per share

The Net Asset Value per share (or NAV/S) is the price per share of USTB, and represents the value of a share, priced each market day, after accounting for all investor cash flows, interest income, and fund expenses.

USTB has 6 decimal places, so 1.000000 (1e6 on Ethereum) is one unit of USTB. NAV/S started at $10 and ticks up every market day due as the Fund's investments accrue interest. NAV/S is calculated by taking the total Assets Under Management (AUM) in the Fund and dividing by the total number of shares in the Fund. This calculation happens once per market day. NAV/S is the true price of USTB based on the Fund’s underlying asset prices.

Interest accrual

USTB works in a similar way to Lido's wstETH. You are minted a static amount of tokens and your token balance stays the same unless you mint, burn, or transfer. The NAV increases over time, allowing you to redeem a share of USTB for an increasing amount of U.S. Dollars or USDC.