Quote from: FloatesMcgoates on January 27, 2014, 07:05:23 AM

Under Deprived's system, the purchase price of one DMS.Purchase was set at a percentage above NAV/U so that every purchase resulted in the NAV/U going up, making the asset as a whole more attractive. What I am reading so far suggests that this will not be the case with your asset, as you only set the +1% in order to cover trade fees and not contribute to NAV. Is this correct?

The purchase price of EXCH is set at NAV/U + 1%; that 1% splits into .4% for the exchange fee and .6% to the fund's capital. I believe that DMS included 2% of the 5% total fee (which the remaining 3% went to Deprived for the management fee).

DMS included that fee to compensate holders of the SELLING / PURCHASE shares, as their interest in the invested funds was being diluted by the additional capital.

For BDD, there is no investment of capital, as I found the counter-party risk to be too high these days with the many recent high-profile defaults and disappearances.

However, BDD does still add additional capital to the fund to the tune of about 30% of what DMS added (.6% additional to fund vs 2% to fund for DMS).

Hope this helps!