Vault Fees

Vaults charge up to two fees, both taken in shares — fees dilute rather than remove liquidity, so charging fees never forces asset sales or reduces the capital working for depositors.

Management Fee

An annualized fee on vault assets, configured in basis points. It accrues pro-rata to elapsed time (on a 365.25-day year) and is charged by minting new shares such that the fee recipients own the fee percentage of the vault. No management fee accrues for time the vault spends paused. The high-water mark is adjusted downward when management shares are minted so the two fees never compound against depositors.

Performance Fee

A fee on returns above the vault's high-water-mark share price, configured in basis points. Whenever the share price exceeds the high-water mark, the fee applies only to the gain above the mark; new shares are minted to the fee recipients and the mark resets to the new share price. Depositors never pay a performance fee twice on the same gain, and never pay one while the vault is underwater relative to its mark.

Protocol split

Every fee accrual is split between the Curator (Manager) and the Protocol Treasury according to the protocol split (a percentage, max 100). Changing the split requires mutual consent of the Curator and the Protocol Treasury — neither side can change the economics unilaterally.

When fees accrue

Fees are accrued automatically before every event that touches share pricing: processing deposit or redemption requests, changing a fee parameter, changing the protocol split, and pausing the vault. Accrual can also be triggered at any time by the Curator, an Operator, or the vault itself.

Facility-level fees (origination, servicing, swap, early-withdrawal) are separate and are documented in Core Lending Functionality and Fees.