Institutional Fee Structures & Performance Tracking

Fusion provides a programmable fee engine that automates the accounting, accrual, and distribution of management and performance fees, aligning incentives between allocators and managers.

Fee Types

• Management Fee (AUM-based): An annualized fee calculated based on total AUM, accruing continuously (per block).

• The Performance Fee is a success-based fee on net profits, aligning incentives with absolute returns. Governed by a High Watermark (HWM), it's paid only when the current NAV exceeds its prior peak. Realized at set intervals based on settled onchain valuations, compensation reflects sustained growth. A rolling structure, which can be manual or time-based, allows the HWM to be reset.

• Deposit & Redemption Fees: Transactional fees that can be Socialized (retained in the vault to benefit existing depositors) or Administrative (directed to a separate address, such as the vault owner, for operational costs).