> For the complete documentation index, see [llms.txt](https://docs.creditcoop.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.creditcoop.xyz/core-concepts/vaults/vault-fees.md). # 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. {% hint style="info" %} Facility-level fees (origination, servicing, swap, early-withdrawal) are separate and are documented in [Core Lending Functionality](/core-concepts/secured-line-of-credit/secured-line-of-credit/core-lending-operations.md) and [Fees](/user-documentation/v2/fees.md). {% endhint %} --- # 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 by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.creditcoop.xyz/core-concepts/vaults/vault-fees.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.