Fee Structures & Pricing for Orbita Notes
1. Issuance Fees
Issuance fees cover the administrative and operational costs associated with launching Orbita Notes. These one-time fees are charged at the start of the issuance process.
- Standard Issuance Fee:
- 1.5% of the maturity value of the Orbita Notes being issued.
- Applies to straightforward issuances with minimal customization.
- Complex Issuance Fee:
- 2.5% of the maturity value for notes requiring additional customization, regulatory handling, or unique features such as conversion options.
- This fee accounts for the added legal, compliance, and operational effort.
2. Management Fees
Management fees are recurring charges that cover the ongoing management and servicing of the issued notes, ensuring smooth operations throughout the life cycle of the Orbita Notes.
- Annual Management Fee:
- 0.75% of the total funds managed.
- Covers advisory services, compliance monitoring, investor relations management, and administrative tasks.
- Performance-Based Fee:
- 10% of returns exceeding predefined benchmarks.
- This fee aligns the issuer’s incentives with the fund’s performance, ensuring that both the issuer and investors benefit from strong results.
3. Legal & Advisory Fees
Issuing Orbita Notes requires legal expertise to ensure compliance with regulations and the drafting of agreements. These fees cover the cost of legal services provided throughout the issuance process.
- Flat Legal Fee:
- $5,000 for standard legal advisory services, including the preparation of issuance agreements and regulatory filings.
- Additional Legal Fees:
- For complex or cross-border issuances, additional fees may apply depending on the scope and jurisdiction.
4. Early Redemption Penalties
Early redemption penalties apply if investors choose to redeem their notes before maturity, ensuring financial stability and planning for the issuer.
- Fixed Penalty:
- 1-2% of the outstanding principal amount, depending on the timing of the redemption.
- This penalty compensates the issuer for potential lost income.
- Reduced Interest Payout:
- For early redemptions, accrued interest may be adjusted downward based on the redemption date.
5. Conversion Fees
For Orbita Notes with conversion options, a conversion fee may apply when investors choose to convert their notes into equity or other financial instruments.
- Standard Conversion Fee:
- 0.5-1% of the conversion value to cover administrative and legal processing.
- Conversion fees incentivize strategic planning and ensure smooth transitions for both issuers and investors.
6. Custody and Reserve Management Fees
Custody and reserve management fees apply to the reserves held by Orbita Note Series LLC to back the issued notes in compliance with the C2C Monetary System. These fees cover the management and safeguarding of the reserves throughout the life of the notes.
- Reserve Custody Fee:
- 0.25% of the reserve value annually.
- Covers secure storage, monitoring, and investment management of reserves.
- Reserve Management Fee:
- 0.50% annually to ensure liquidity and proper allocation of reserves, enabling smooth note servicing and maturity payouts.
7. Reporting & Compliance Fees
These fees cover the costs associated with regulatory reporting, audit compliance, and transparency obligations required by the Orbita Note issuing process.
- Annual Compliance Reporting Fee:
- $2,500 per year to cover the preparation and submission of compliance reports to regulatory bodies.
- Audit Fee:
- $1,000 per external audit for third-party verification of reserves, fund performance, and compliance status.
- Customized Reporting Fee:
- $1,000 per report beyond the standard reporting package, for investors requiring tailored financial insights.
8. Investor Relations Support Fees
Maintaining strong relationships with investors is essential for the successful issuance and management of Orbita Notes. These fees ensure dedicated support and timely communication with investors.
- Annual Investor Relations Fee:
- $2,500 per year to provide proactive investor updates, manage inquiries, and organize investor meetings.
9. Penalties and Adjustments for Non-Compliance
If issuers fail to meet compliance standards, penalties or adjustments may apply to ensure accountability and maintain market integrity.
- Compliance Penalty:
- Up to 2% of the total maturity value for significant breaches of compliance obligations.
- Adjustment to Management Fees:
- Issuers may face increased management fees if operational inefficiencies or compliance delays occur.
Conclusion
The fee structures and pricing associated with issuing Orbita Notes are designed to ensure fairness, sustainability, and alignment with the C2C Monetary System. These fees not only support the operational and regulatory requirements of the issuance but also create a transparent framework for both issuers and investors. By clearly outlining the costs involved, Orbita Note Series LLC fosters trust and accountability within the Orbita Note issuing community. Ensuring all parties understand the associated expenses guarantees smooth operations and strengthens relationships between issuers, investors, and regulatory bodies.