> 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.