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 up to 15bps management fee to the Investment Manager. These expenses are accrued each market day and are reflected in the Fund's NAV.

Management Fee and other Fund expenses will not accrue until the Fund reaches a $200 million Net Asset Value; once reached, the management fee and other fees and expenses that may be incurred by investing in the Fund will accrue daily. Clients with less than $25 million Net Asset Value will be charged a 0.15% management fee. Clients with over $25 million Net Asset Value will be charged a 0.15% management fee on $25 million Net Asset Value and a 0.05% management fee on the Net Asset Value above $25 million.

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, after accounting for all investor cash flows, interest income, and fund expenses. The NAV/S of USTB is recorded with 6 decimal places of accuracy.

NAV/S started at $10.000000, and increments continuously 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.

Continuous NAV/S

USTB features a Continuous NAV/S that updates every second, 24 hours a day, 365 days of the year. This is achieved by using the day-over-day growth rate of the Fund's NAV/S to extrapolate the price at any given time, and recalculates the growth rate based on data from our NAV Calculation Agent partner. Purchases and Redemptions use the Continuous NAV/S at the time the transactions is initiated.

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.