Executive Summary
Index Coop will implement updated revenue terms for legacy products deployed on Set Protocol to cover ongoing operational costs and associated responsibilities as well as to encourage users to migrate to newer products. Issuance and redemption fees on the current leverage suite built on Index Coop Protocol will also increase to more closely align with market fees.
Rationale
- Legacy products on Set Protocol have fully reached the end of their product life cycle and do not offer Index Coop further growth opportunities
- Continued responsibility for them and ongoing support against a back drop of declining TVL and revenues requires adjustment
- Adjusting fee parameters enables Index Coop to redirect resources to higher‑impact segments
- This represents further steps to re-orientate and focus the business around sustainable cash flows
Scope and Specification
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Updated Revenue Terms:
- Streaming fee on all legacy Set Protocol tokens increased to 5%
- Mint/redeem fees on all Index Coop Protocol leverage products increased from 10 to 20 bps
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Affected Legacy Product Lines:
- ETH2x-FLI
- BTC2x-FLI
- DPI
- MVI
- BED
-
Affected Active Product Lines:
- All leveraged suite products on all chains
-
Support & Maintenance:
- Legacy Set Protocol products remain redeemable indefinitely
- These changes do not include further methodology updates or active enhancements
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Transition Timeline:
- Immediate: Announcement, and upon successful governance vote, holder communication
- Grace period: Holders of legacy products will have until Jan 1st 2026 before the updated fees to come into effect
Implications for Holders
- No forced exit; full redemption optionality preserved
- Raised holding costs due to streaming‑fee increase
- Incentivized to migrate to the new & improved 2x or 3x tokens on Index Protocol
Implications for the Protocol / DAO
- Increased revenue and more sustainable cash flows
- More efficient fee-parameter alignment
- Clear separation of “legacy” vs. “active” product tiers
Conclusion
Market conditions, user demand, and capital flows now favour more composable and actively updated strategies. Adjusting the fee and support model for legacy products enables Index Coop to focus on higher‑value opportunities while preserving choice for existing holders.
Voting
FOR:
- Increase legacy Set Protocol product streaming fees to 5%
- Increase Index Coop Protocol leverage product issuance and redemption fees to 0.20%
AGAINST:
- DO NOT Increase legacy Set Protocol product streaming fees to 5%
- DO NOT Increase Index Coop Protocol leverage product issuance and redemption fees to 0.20%
Disclaimer
You shall not purchase or otherwise acquire our restricted token products if you are: a citizen, resident (tax or otherwise), and/or green card holder, incorporated in, owned or controlled by a person or entity in, located in, or have a registered office or principal place of business in the U.S. (defined as a U.S. person), or if you are a person in any jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorised (together with U.S. persons, a “Restricted Person”). The term “Restricted Person” includes, but is not limited to, any natural person residing in, or any firm, company, partnership, trust, corporation, entity, government, state or agency of a state, or any other incorporated or unincorporated body or association, association or partnership (whether or not having separate legal personality) that is established and/or lawfully existing under the laws of, a jurisdiction in which such offer, sale, and/or purchase of any of our token products is unlawful, prohibited, or unauthorised).
None of our token products have been or will be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the U.S. Our restricted tokens may not be offered, sold, or delivered within the U.S. to, or for the account or benefit of, Restricted Persons. Our restricted tokens that may be offered on secondary markets and other platforms are not for distribution to any Restricted Person. No offers, sales, resales, or deliveries of any of our token products may be made in or from any jurisdiction (including the U.S.), except in circumstances that will result in compliance with any applicable laws and regulations and that will not impose any obligations on Index Coop. Persons who obtain our token products are required to inform themselves about and adhere to any such restrictions. Index Coop reserves the right to impose further restrictions at its sole discretion, which will be communicated through its terms of service or on its website. All website users, including U.S. Persons, must read our Terms of Service and List of Restricted Tokens. U.S. person(s) must comply with our Terms of Service and not use restricted Index Coop tokens.
Index Coop does not provide tax advice. Nothing contained in this document should be construed as tax advice, and you should consult with your own tax advisor before making any financial decisions.
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