Distribution Fee
A fee charged to distribute securities tokens to investors during an offering.
Full Definition
A distribution fee is a charge applied when security tokens are delivered to investors during a capital raise. This fee covers the operational costs of tokenization, blockchain transaction fees, and delivery mechanics for both on-chain and ISIN-bearing securities.
Distribution fees are typically expressed as a percentage of the capital raised and are disclosed upfront in offering terms.
Why It Matters
On Sails.to, distribution fees are transparent and competitive compared to traditional securities placement costs. The fee structure is disclosed clearly in the pricing page so issuers can plan their capital requirements accurately.
For investors, understanding distribution fees helps compare the total cost of participating in different offerings. Sails.to's blockchain infrastructure keeps these costs lower than traditional alternatives while providing enhanced features like instant settlement.