Case note · AVAX One / Hivemind

AVAX One / Hivemind: 1.25% annual management fee, a 10-year term and a related-party manager.

AVAX One's Hivemind agreement is a strong public comparator because the issuer discloses discretionary authority, a 1.25% account-size fee, a long initial term, cause-based termination mechanics and later-period realized fees.

Agreement snapshot

FieldPublicly disclosed term
Agreement dateSeptember 18, 2025; disclosed as effective upon closing of the related offering
ProviderHivemind Capital Partners, LLC
RoleDiscretionary asset management for AVAX One's digital-asset strategies, including authority over staking, transfers, trades and sales
Management fee1.25% per year of Account Size, calculated and payable quarterly in advance
ExpensesDocumented out-of-pocket expenses reimbursable by the company
Initial termUntil the tenth anniversary of the effective date unless earlier terminated
RenewalSuccessive five-year periods by mutual agreement
Company terminationFor cause with at least 30 days' prior written notice
Manager terminationFor cause with at least 60 days' prior written notice; immediate written termination if continued service would violate law, regulation or regulatory guidance

The provider role is broad enough to make fee comparisons meaningful

AVAX One's filings say Hivemind has full discretion over AVAX staking operations and transfers, trades or sales of digital assets. The manager also evaluates and selects custody solutions and staking providers and presents monthly reports to the Board.

That makes the arrangement materially different from a narrow strategic-advisory engagement. The 1.25% fee therefore belongs in a discretionary-manager peer set rather than a blended adviser/provider table.

The 10-year term changes the economic picture

A 1.25% annual rate can look ordinary in isolation. The contract duration and termination path change the benchmark. The filed disclosure describes a 10-year initial term and cause-based termination rights rather than a simple annual non-renewal structure.

Benchmarking implication: compare fee, authority, term and ordinary exit path together. A percentage without duration and termination rights is incomplete.

Related-party facts belong in the same evidence record

AVAX One's June 30, 2026 Form 10-Q identifies Hivemind as a company controlled by Matt Zhang, the current chairman of the Board. The same filing says Hivemind owned approximately 0.8 million common shares as of June 30, 2026.

Those facts do not establish whether the economics are fair or unfair. They are relevant to governance, comparability and conflict mapping and should be kept separate from any legal or fiduciary conclusion.

Later filings confirm the economics remained live in 2026

The June 30, 2026 Form 10-Q continued to describe the Hivemind agreement and disclosed that AVAX One incurred approximately $1.0 million to Hivemind during the first six months of 2026. The filing states that the management fees were paid in full as of June 30.

This later-period evidence is useful because it converts the original contract from a static exhibit into a current, realized economic relationship.

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Public-source factual commercial research only. No legal, fairness, fiduciary, accounting or investment opinion and no recommendation concerning any provider.

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