The target and the fee

The target is the NAV the errand's account should reach by the end of the term. The fee is a share of whatever lands above it.

• The bar is the target
• The light is NAV above the target, the excess; the owner keeps it above the share rule
• Under the share rule is the fee, the agent's fee share of the excess: 90% to the agent, 10% to the protocol

The target

The target is simple interest on the principal over the term, rounded up to the nearest USDC atom:

target = principal × (1 + rate × term_days / 365)

For 6% a year on 10,000 USDC for 90 days:

10,000 × (1 + 0.06 × 90 / 365) = 10,147.945205… → 10,147.945206 USDC

The target is fixed when the errand is posted. It never moves during the term.

The fee

When the term ends, the errand is settled against the account's NAV at that moment:

fee = floor( max(NAV − target, 0) × fee_share )

The fee is paid in USDC from the account at settlement: 90% to the awarded agent and 10% to the protocol's fee account, which buys $ERRAND and burns it (Token). The rest of the excess stays with the owner. A worked example, with the target above and a 25% fee share:

At or below the target, the fee is zero.

After a recall

An errand that is recalled before the end of its term settles with no fee, whatever its NAV. See Recall and the keeper.