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What fees do Ondo Intelligent Portfolios charge?

Each portfolio charges an annual service fee. The service fee covers the ongoing operations and maintenance of the portfolio, including rebalancing and investing and divesting the underlying assets.Minting or redeeming portfolio tokens will also incur a mint/redemption fee at the constituent level, in accordance with individual Ondo Stock fees. Learn more.In addition, when a quote is generated for an investor to buy (or sell) a portfolio token, the price may be slightly more (or less) than the price at which the platform buys (or sells) the underlying assets, with any difference and any fees being retained by the platform. Investors are responsible for their own gas costs.(Note that if portfolio tokens are acquired in the secondary market, fees may be charged to you by other parties.)

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How does the service fee work?

The service fee is an annual rate that accrues daily and is reflected in the portfolio token’s value — there is no separate charge and nothing to pay directly. Your token balance does not change; the fee is already accounted for in the token’s price. Fee rates vary by portfolio and are shown on each portfolio’s product page on app.ondo.finance.

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How are Ondo Intelligent Portfolio tokens taxed?

Because each portfolio is backed by a basket of Ondo tokenized stocks and ETFs, withholding taxes apply at the constituent level. Dividends or other income paid by the underlying securities are subject to withholding taxes before reinvestment at the constituent level, and the after-withholding total return flows through to the portfolio token’s price.The Ondo entity that issues the tokens is based in the British Virgin Islands (BVI), so dividends paid by US securities to the entity are subject to the standard rates for BVI entities. Withholding rates vary by the type of underlying asset — for example, dividends from US companies are generally withheld at 30% for the BVI-based issuer, portions of US fixed-income ETF distributions may be exempt, and non-US companies listed as ADRs are typically subject to their home country’s withholding instead. See detailed Fees & Taxes for Ondo tokenized stocks. Because each portfolio holds a mix of assets, the portfolio’s effective withholding rate is a blend of its constituents’ rates. Each portfolio’s product page at app.ondo.finance shows its dividend yield both before and after estimated withholding.No other taxes (e.g., capital gains, income) are withheld, nor are any taxes withheld when tokens are redeemed. However, investors may be subject to tax in connection with redeeming, purchasing or holding tokens, depending on the laws of the jurisdictions in which they are subject to tax, as well as their own particular tax circumstances. Each investor is solely responsible for understanding, reporting and fulfilling his, her, or its respective tax obligations. We strongly suggest that each investor consult his, her, or its own tax advisor to determine their tax obligations associated with redeeming, purchasing or holding Ondo Intelligent Portfolio tokens.