managementFeeBps and performanceFeeBps. This page covers how they are actually
charged.
How fees are paid
Fees are dilutive share mints: when a fee settles, the protocol mints new vault shares to you, the curator, diluting every other holder proportionally. Assets never leave the vault — your fee is a growing claim on it. There is no separate fee-collection call. Fees settle atomically inside every deposit and withdrawal settlement — eachmintShares, burnShares, and forceBurn
first brings fees up to date, then applies the deposit or withdrawal math on the
post-fee share price.
Management fee
managementFeeBps is an annualised rate on NAV, accrued pro-rata over the time elapsed
since the last fee settlement, regardless of performance. A 100 bps vault that settles
a deposit 73 days after its last settlement mints you shares worth ≈ 1% × 73/365 of
NAV.
As a safety valve, a single settlement mints at most 2.5% of NAV in management fees, however long the gap since
the last one. If your vault can go months without a deposit or withdrawal, settle something periodically or the excess
accrual is forfeited.
Performance fee
performanceFeeBps is charged only on gains above the high-water mark — the
highest share price the vault has already paid fees at. Each fee mint ratchets the HWM
up to the new post-fee share price; it never moves down. You are never paid twice for
recovering the same drawdown.
The vault row exposes the current mark as global_hwm.
Benchmark assets
By default the HWM is denominated in USD. SettingbenchmarkAsset at creation
denominates it in a spot asset instead, so the performance fee charges only on
outperformance versus that asset — e.g. an ETH vault that charges fees on beating
ETH, not on an ETH rally. Omit it for the feed-less USD default.
Protocol fee share
A deployment-setprotocol_fee_share_bps slice of every fee mint is diverted to
the protocol fee recipient instead of you. The total shares minted are unchanged — the
split only decides how they are divided between you and the protocol. The vault row
exposes the rate.
Withdrawing fees
Fees arrive as vault shares, so realising them is just a withdrawal: from your own wallet, request a withdrawal for the shares you want to redeem (shareholder.requestWithdraw), then settle your own burn in the
settle loop like any other request.
The one constraint is the curator stake floor. To keep your incentives aligned
with your shareholders’, you must hold the greater of:
- $10,000, or
- 1% of the vault’s value
vault_curator_stake_below_min, 18013). Everything above it — accrued fees
included — is yours to withdraw whenever you like.
The floor applies for as long as the vault is open. It lifts only on the vault’s final closing burn — see
Winddowns for taking out your full stake.
Observe fees in practice
Fee settlements are public — every mint shows up in the vault’s action history with the shares minted and the new high-water mark:public/get_vault also folds pending fees into its live pricing:
simulated_share_price_usd is the price a depositor would actually face with your
fees settled, which is why it is the quote anchor for the
settle loop.
Create a Vault
Where the fee rates, benchmark, and the rest of the economics are set.
Process Deposits & Withdrawals
The settlements your fees piggyback on.