> 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/management-fee.md). # 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) --- # 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/management-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.