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🧮 How are fees calculated on contributions?
🧮 How are fees calculated on contributions?

This article covers how fees you set are deducted when an investor contributes in a deal.

Milad Mirshahi avatar
Written by Milad Mirshahi
Updated over a week ago

Note that this article only applies to investment groups, as projects do not charge an additional fee during a raise.


Presail employs a deductive fee model for deal participation. If you specify a fee in a deal, it is subtracted from the investor's total investment amount, rather than added on top.

The calculated fee forms the allocation used for determining how many tokens an investor should receive [Invested amount - Fee = Allocation].


How The Contribution Fee Structure Works - Example

To better understand the deductive fee model, consider an example where you charge a 10% fee, with a token price of $1.

An investor makes a contribution of $1000.

The fee, in this case, 10%, is applied to the $1000 investment, equating to $100.

The investor's allocation is then calculated as $900 ($1000 Investment - $100 Fee).

Therefore, the investor would receive 900 tokens ($900 investment / $1 Token Price)

It's important to note that while the total contribution of the investor is recorded in the allocation management, the defining factor for the number of tokens an investor receives is the allocation. The formula is Allocation / Token Price = Token Allocation.

Where Do The Fees Get Sent?

Presail does not split up the fees that you charge in a deal. The fees get sent to the same wallet address as the contribution is made to.

Within every deal, we provide you with the exact details of how much you have raised towards the SAFT, and how much you have charged in fees, making it easy to manage the amount defined in the SAFT that you need to send to the project.

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