Appendix 2

Costs and Fees for Liquidity Provisioning

Takadao Holdings is the technical, development and community support entity that maintains and improves the Takaturn protocol.

Takadao is compensated from the yield generated on funds held as collateral. A 20% fee is deducted from all yield generated. The fee is split between Takadao and Zaynfi, the liquidity provisioning protocol.

The above fee finds its origins in the ‘2 and 20’ method of calculating fees due to fund management firms in the private equity and venture capital industries. Takaturn 2.0 talks to the 20 part of the equation which is sometimes referred to as a ‘carry’ or performance fee (PF).

In the case of Takaturn 2.0 this carry is levied at every YG event (monthly cycles) and distributed to the 2 service providers critical to the functioning of the protocol’s YG feature, viz:

• Takadao Holdings

• ZaynFi

Let’s assume that 1 ETH has been lodged as collateral security and has been opted in for YG. Assuming that the yield is 1%, the fees are deducted as follows:

Collateral Security	*	Yield Rate	=	Total Yield	*	20%	=	Fee Deducted
1 ETH	*	1%	=	0.01 ETH	*	20%	=