Management Fee

Management Fee

The Management Fee is a time-based fee charged on the total assets under management (AUM) in a vault.

How It Works

• Continuous Accrual: The fee does not wait for a monthly or yearly bill. Instead, it accrues continuously, second-by-second, based on how long your assets remain in the vault.

• Always Net of Fees: The fee is calculated and updated automatically whenever any user deposits, withdraws, or when the strategy rebalances. This ensures the vault balance and share price shown on your dashboard are always up-to-date and net of fees.

A Simple Example

• You deposit 1,000 USDC into a vault.

• The vault has a 0.2% annual management fee.

• After One Year: If you leave your funds in the vault for a full year, the total accrued fee is 2 USDC (0.2% of 1,000 USDC).

• After Six Months: If you decide to withdraw your funds after exactly six months, the fee calculated up to that second is 1 USDC (half of the annual fee).

• The Result: The fee recipient receives 1 USDC worth of minted vault shares. Your remaining shares are worth 999 USDC (plus any yield the strategy generated during those six months)