# Index fees explained

The amount of the fees depends on the specific index. Refer to the index page on the website to view the Fees.

Two types of fees apply to each index:

**Reward fee.**Every time the index harvests generated income, from 0% to 5% of the funds gathered are retained by the Locus index. The percentage of fee depends on the specific index, e.g., xETH has a 5% reward fee while xDEFI has 0%.**Annual streaming fee.**The index also retains from 0.5% to 1.5% annually of the total assets the Index has. This fee percentage also depends on the specific index, for example, xUSD has 0.5% streaming fee and xDEFI has 1.5%.

The fee is extracted by minting new shares of the index to the Locus treasury balance. This is done at the time of harvest, and calculated based on time since the previous harvest.

Example:

xETH index had 100 ETH and earned 1ETH in a month so 5% of the 1 ETH earned (0.05 ETH) will be taken by Locus treasury as a reward fee. The annual streaming fee for one month will be 0.7%/12months * 100ETH =0.05833 ETH

So in our example from the entire index with a balance of 100 ETH about 0.1 ETH will be collected per month, which is about 0.1%

With this example, you can assume that if you invested 1 ETH your monthly fee will be about 0.1% of that, i.e. 0.001 ETH.

*Disclaimer: This is an example for your better understanding, take it as a basis for your own calculations.*

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