> For the complete documentation index, see [llms.txt](https://docs.charterfnd.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.charterfnd.com/charter-basics/costs.md).
# Costs
Under the traditional model, builders face significant costs up front: $30,000 for a Cayman foundation, payable before any work begins. Additionally, independent director and supervisor fees for the Cayman Foundation and the BVI company run approximately $35,000 to $60,000 per year, with fees at the higher end of the bracket for projects carrying elevated regulatory, sanctions, or reputational risk. Most providers require 6 months' worth of fees in advance of engagement.
This brings typical upfront costs to approximately $47,500, and total costs to $70,500, before a single line of product is shipped.
Charter restructures this entirely, cutting costs in half. Builders pay $25,000 to board (about half of the traditional upfront cost) with remaining fees spread across the process. The most significant structural cost, namely, the Cayman Islands Foundation Company and the appointment of independent directors, are deferred until after a successful launch.
Charter’s partner agreements, including preferred rates with offshore legal counsel, mean builders access institutional-grade infrastructure at a fraction of the cost of assembling it independently.
#### Charter: Fee breakdown by Phase
| Phase | Fee | Deliverable |
| -------------------------------------- | ------------------------------ | ---------------------------------------------------------------- |
| Phase 2: Board | $5,000 | Formation of Cayman Launch Company |
| Phase 2: Board
(Deposit)
| $5,000 | Held down towards conversion costs or wind-down |
| Phase 2: Board
(Charter Fee)
| $15,000 | Access to Charter infrastructure framework and partner ecosystem |
| Phase 3: Prepare | $5,000 | Formation of BVI Launch Subsidiary |
| Phase 5: Release | $5,000 (net of $5,000 deposit) | Conversion into Post-Launch Foundation |
**Total (successful launch): $35,000**
**Total (if project does not launch): $25,000 to $30,000 (Deposit applied toward wind-down)**
#### Cost Comparison
| ** | Traditional | Charter |
|---|
| Cayman Setup | $30,000 | $5,000 |
| Offshore Director Fees | $35,000 (per year) | — |
| BVI Launch Subsidiary | $5,500 | $5,000 |
| Conversion | — | $10,000 |
| Charter Framework Fee | — | $15,000 |
| Total | $70,500 | $35,000 |
| Upfront Costs | $47,500 | $25,000 |
*Traditional figures are estimated based on conservative market rates for comparable structures. It's not uncommon for traditional launch structures to cost $100,000+. Charter director and supervisory costs are included within Charter's fee structure and are not charged separately for builders*.
#### Deposit
A $5,000 deposit is required at the start of the Charter Process alongside the Cayman Launch Company formation fee and the Charter Fee. Should the project succeed, this deposit is applied toward the $10,000 conversion cost at Release, reducing the amount payable at that stage to $5,000.
Should the project not proceed to launch (see Failed Launch below), the Charter Foundation will, in consultation with the builder, use the deposit to wind down the launch structure. Any remaining funds will be returned to the builder.
#### Token Allocation
In addition to the cash fee, builders are expected to provide the Ink Foundation, Charter’s facilitating partner, with a future token allocation.
This structure is intentional. It ensures that Charter and its partners are aligned with the long-term success of the network, rather than short-term outcomes. All such allocations are subject to structured vesting and lock-up periods, and are not intended for immediate liquidity or sale.
#### Pre-Launch Carrying Costs and Extended Timelines
Token launches are sometimes delayed, due to market conditions, product readiness, or strategic considerations. Because the most significant recurring cost (the appointment of independent directors to a Cayman Foundation Company) is deferred until Release under the Charter model, builders do not carry full foundation-level directorship costs while the project remains pre-launch.
During the pre-launch period, the Cayman Launch Company and, once formed, the BVI Launch Subsidiary remain subject to ongoing obligations, including corporate maintenance, registered office and agent fees, annual filings, and any compliance or monitoring requirements. The Charter framework fee covers access to the framework and the directorship provided by the Charter Foundation during the launch process. Recurring third-party maintenance costs at the entity level are borne by the project. Where a launch is materially delayed, the Charter Foundation will work with the builder to confirm the allocation of these ongoing costs so that expectations are clear before they arise.
#### Failed Launch
At this point, it is worth noting: not every project succeeds. In fact, many token launches will fail, even with the wind at their back and a smart team at the helm.
Under the traditional token launch model, this creates a significant burden. Builders are often left with a fully formed offshore structure that must be wound up. This can be a challenging process, given that the Cayman foundation structure does not have any shareholders. Fortunately, Charter is designed not just for successful launches, but for clean exits when things don’t go to plan.
Should the Launch fail to go as planned, instead of proceeding to Phase 5: Release, the Charter Foundation will (in consultation with the builder), unwind both the BVI Launch Subsidiary as well as the Cayman Launch Company.
In practical terms, this means that if a launch does not proceed as planned, the Builder is not left carrying unnecessary structural weight. The vessel can return to harbor, be decommissioned cleanly, and the builder can move forward without being tied to a lingering offshore structure.
Costs for the wind-down shall be funded first from the deposit paid by the Builder pursuant to the Charter Services Agreement. If the deposit is insufficient to cover the total wind-down costs, Charter Foundation shall fund the excess. Any portion of the deposit remaining after completion of the wind-down shall be returned to the Builder within 30 business days.
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