> For the complete documentation index, see [llms.txt](https://docs.collats.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.collats.com/collats-dao/finance.md).

# Finance

The backbone of a DAO is its smart contract. The contract defines the rules of the organization and holds the group's treasury. Once the contract is live, no one can change the rules except by a vote. If anyone tries to do something that's not covered by the rules and logic in the code, it will fail. And because the treasury is defined by the smart contract too that means no one can spend the money without the group's approval either.

## Income

#### Collats Minting

The main source of income comes from the issuance of Collats token. There is an adjustable fee of  0.9% for minting the Collats token.

#### AUM Reinvestment 

TBD

#### NFT Vault

For the foreseeable future is not considered but a withdraw fee could be added to each transaction.

#### Loan

Variable interest rate depending on loan term. 

#### Auction

TBA

#### Insurance

TBA

#### Liquidations

TBA

#### Marketplace

0.3% transaction fee

## Expenses

#### Fixed

Backend Infrastructure 

#### Variable

Collaborators