> For the complete documentation index, see [llms.txt](https://docs.ipor.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ipor.io/fusion-for-depositors/user-guide/vault-fees/performance-fee.md). # 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.ipor.io/fusion-for-depositors/user-guide/vault-fees/performance-fee.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.