Revenue Model
The revenue can broadly be categorized into the following streams:
Success Fees
This is the key source of revenue for ZIGNALY Protocol, guaranteeing fair means of monetization for investors and fund management. ZIGNALY charges a small percentage of the return (5-15%, depending on the circumstances) that is generated by the fund manager for the investors. ZIGNALY is fully optimized for this source of revenue and, therefore, able to innovate with more sub-sources to generate further success fees. A significant portion of this revenue stream will be used for buyback & burn of ZIG Coin.
Across ZIGNALY implementations, we promote a 'high watermark base’, ensuring no success fee during loss recovery. Supposedly, an investor's high watermark is their initial $1,000 investment. They pay Success Fee only if their balance exceeds the initial $1,000, due to a profit. Going forward, assuming that a $100 profit is added to the account, the new High Watermark level is established at $1,100. Then, the success fee applies only if it exceeds this amount ($1,100 in this case).
White Label Solutions (Z-Prime)
Under the Z-Prime initiative, ZIGNALY has received significant service fees to develop and deploy solutions for larger fund managers & third-party platforms. There are two types of service fees, a one-time fixed paid mostly at the deployment and a recurring monthly fee associated with the usage of these deployed white-labeled solutions.
Treasury Management
ZIGNALY Treasury manages a diverse portfolio with unutilized project funds, generating revenue. The key point to understand is that the funds are managed in a secure and risk-averse style, with 0 exposure towards the customer funds at any time. This sets the foundation for ZIGNALY's treasury, open to platform stakeholders in the future.
Trading Fees Rebate
Through our Binance Broker Partnership, ZIGNALY receives a portion of the trading fee generated through the ZIGNALY ecosystem. However, it is important to understand that ZIGNALY doesn't optimize for this revenue stream and focuses on the initiatives that directly benefit the yield generation for the investors.
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