Economics
Who pays whom
Follow pays Fade a fee every day for the exposure Fade carries. The yearly rate is 2% plus up to 18% more as Follow's money approaches Fade's size:
| Follow as a share of Fade | Yearly fee on the exposed money |
|---|---|
| 0% | 2% |
| 50% | 11% |
| 100% or more | 20% |
The fee is charged for the calendar days between two settlements, so a weekend counts.
Who gains when
On a member or Top 5 basket, Follow gains when the open buys beat the S&P 500 and Fade gains when they fall short, plus the fee. On gold and oil, Follow moves with the ETF and Fade against it.
Measured over the House reports of the past year, the members as a group did not beat the S&P 500: about 44% of their buys did, 90 days after the report. A few members did much better, which is what the table and the Top 5 are for. Past scores say nothing certain about the next buy.
What CAUCUS takes
Nothing. The program has no protocol fee and there is no token.
Rent
Every account on Solana holds a small deposit of SOL called rent. Requests and positions are paid by the person who opens them, and the rent of a request comes back when it is claimed or cancelled. Filing records are paid by the keeper who posts them and come back to that keeper when the record is closed.