Performance Fee

The Performance Fee is a profit-based fee charged only on the gains earned by a vault's strategy.

The total amount is displayed on the "Vault Info" page of each vault.

How It Works

• Only on Profit: You only pay a fee when your investment grows. If the vault doesn't make a profit, you do not pay a performance fee.

• The "Peak" Rule (High Water Mark): We track the highest value (the "peak") the vault has ever reached. If the market dips and then recovers, you are never charged a fee twice for the same growth. You only pay a fee when the vault sets a brand-new profit peak.

A Simple Example

• You deposit 1,000 USDC into a vault with a 10% performance fee.

• The strategy successfully earns interest, and your share of the vault grows to 1,100 USDC.

• The Gain: You made a profit of 100 USDC.

• The Fee (10%): The fee is 10 USDC (10% of 100 USDC).

• The Result: The strategist receives 10 USDC worth of vault shares. You keep 90 USDC (90% of the profit) and your vault balance is now worth 1,090 USDC.