💰Business Model

Protocol Fee: A commission on the fund's AUM.

How do you make money?

Fume business model has two major models:

• Software-only -> a tiered SAAS pricing model based on a % of AUM.

• Fund Admin

  • Fees and commission for compliance related to a legal wrapper, i.e. investment vehicle such as an alternative investment fund

  • Revenue sharing with fund administrators for a white-label solution with a vertical distribution to their clients.

How much could you make?

Example of a client - Crypto Hedge Fund

• $50M of Assets Under Management

• Protocol Fees = AUM * 0.5% = $250k/year

Currently, the total AUM held within digital assets investment funds worldwide is estimated at $124B, leading to a potential $620M/year in Fume's protocol fees.

How did you come up with this pricing?

Fixing a protocol fee based on AUM it implies a pay-as-you-go fee. It aligns the incentives between the administration (Fume) and the managers. This pricing allows the creation of much smaller funds and survival during difficult market conditions.