Fees
Fees
There are two fees in the protocol. Only one is charged to you directly.
Exit fee
You
On requestRedeem
1% — hard-coded, cannot be raised
Performance fee
Taken from yield
On each profit report
50% of profit by default; governance can raise
There is no deposit fee and no management fee. Entry is free, and holding costs nothing.
The exit fee
Charged when you call requestRedeem. It is deducted from the amount you are quoted, so the figure stored in your request is already net of it.
# Current fee — scaled so that 1e18 = 1%
cast call <vault> "fee()(uint256)" --rpc-url <rpc>
# What you would actually receive, net of fee
cast call <vault> "previewRedeem(uint256)(uint256)" <shares> --rpc-url <rpc>The 1% cap is enforced in the contract, not by policy. setFee reverts on any value above it. This is one of the few parameters governance genuinely cannot raise beyond its stated bound.
Where it goes
The fee is not burned. It is minted to the treasury as shares.
This design keeps the share price neutral: your shares are burned in full, but only the net asset amount is removed from the vault. Without the offsetting mint, the difference would silently raise the share price for everyone who stayed. Minting the fee to the treasury instead makes it an explicit claim rather than an implicit subsidy.
The performance fee
Taken from reported profit before the remainder reaches the share price. You are not billed for it — it reduces the yield you receive rather than being deducted from your principal.
This cap is adjustable up to 100%. The contract only checks that the value is at most 10_000 basis points, so governance can in principle assign all reported profit to the treasury. The change goes through the 48-hour timelock, so it is public before it takes effect. Unlike the exit fee, there is no structural ceiling here.
The fee is paid to the treasury in shares, priced so that they are worth exactly the fee amount once vesting completes — the treasury is paid on the same schedule as depositors, not ahead of them.
The treasury also absorbs losses
The performance fee is not one-directional. When a loss is reported, the treasury's shares are burned to absorb its proportional share of it.
If the treasury does not hold enough shares to cover its portion, the shortfall is recorded as treasuryDebt, and future performance fees are redirected to depositors until it is repaid. The treasury earns nothing new while it owes.
A non-zero treasuryDebt means depositors are currently receiving 100% of reported profit.
Worked example
You deposit 10,000 USDC and receive shares. Over time, 1,000 USDC of profit is reported at a 50% performance fee — meaning amount = 1000 to shareholders and feeAmount = 500 to the treasury, as two separate slices of realised P&L.
Your deposit
10,000 USDC
Profit credited to shareholders
+1,000 USDC (vesting over 7 days)
Your position after vesting
~11,000 USDC
Exit fee at 1% on redemption
−110 USDC
You receive
~10,890 USDC
The treasury separately holds shares worth ~500 USDC plus your 110 USDC exit fee.
Checking current terms
Fees can change without notice — there is no timelock. Before depositing:
Watch FeeSet on the vault and MaxFeePercentage on the Yield contract for changes.
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