The management fee is an annual fee that is charged in small proportions daily to users who hold DAAs. DAA managers profit from the management fee for their services in managing the DAA. DAA managers can set the yearly management fee between 1 and 10%.
For example, if the DAA management fee is 3%, a portion of the management fee is charged daily from total AUM (assets under management). Formula for management fee: 3%/365 = daily charge (3%/365 = 0.00821% per day). This does not change the number of DAA units users are holding.