Mercury

## What is Mercury Treasury and how does it work for startup cash management?

## Overview Mercury Treasury is a cash management product offered by Mercury that enables startups and other businesses to invest idle cash reserves into lower-risk mutual funds to earn a yield. The product is designed for companies with significant cash balances, specifically those maintaining a minimum of $250,000 across all their Mercury accounts. It integrates directly with Mercury's core business banking services, allowing for the automated transfer of funds between a company's operational checking accounts and its Treasury investment account. This functionality helps businesses manage their operational runway by putting excess cash, which is not immediately needed for day-to-day expenses, to work in investment vehicles that aim to generate returns higher than those of standard bank accounts. ## Key Features The investment services for Mercury Treasury are provided by Mercury Advisory, LLC, an SEC-registered investment advisor and a subsidiary of Mercury Technologies, Inc. The funds and securities themselves are held in the customer's name at Apex Clearing Corp, a FINRA-regulated broker-dealer that acts as the custodian. This custodial arrangement ensures that customer assets are segregated from the brokerage's own assets. Because Mercury Treasury is an investment product, it is not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, accounts are protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 in securities and cash (with a $250,000 limit for cash) in the event of the brokerage firm's failure. It is critical to understand that SIPC does not protect against investment losses resulting from market fluctuations. ## Technical Specifications Mercury Treasury provides access to specific investment instruments selected for their focus on capital preservation and liquidity. The primary options include the J.P. Morgan U.S. Treasury Plus Money Market Fund (JTCXX), which invests mainly in U.S. Treasury securities and offers same-day liquidity for transfers initiated by 3:00 PM ET. Another option is the Morgan Stanley Ultra-Short Income Portfolio (MULSX), an ultra-short bond fund that invests in a diversified portfolio of high-quality instruments like commercial paper and certificates of deposit, offering liquidity within one to two business days. For clients with balances over $25 million, Mercury also offers personalized portfolio management in collaboration with Morgan Stanley. The yields on these funds are variable and tied to prevailing market interest rates. As of February 2026, net yields ranged from approximately 3.03% to 3.80%, depending on the fund and the total deposit amount. ## How It Works Mercury charges a tiered management fee for the Treasury service, which ranges from 0.15% to 0.60% of the total monthly positions. The fee percentage decreases as the total deposit amount increases. All advertised yields are presented net of this management fee. There are no separate fees for opening a Treasury account or for transactions within the service. ## Use Cases ## Limitations and Requirements Businesses using Mercury Treasury must be aware of the inherent risks. Investments in mutual funds are subject to market risk, and the value of the principal is not guaranteed. Past performance is not an indicator of future results. While the selected funds are considered lower-risk, the possibility of losing money exists, distinguishing this product fundamentally from an FDIC-insured savings account. ## Comparison to Alternatives ## Summary