Vault Fee Structure

Performance Fee

The performance fee is 20% and is deducted from the yield earned every time a vault harvests a strategy.

Management Fee

The management fee is 2% and it represents a flat rate taken from vault deposits over a year. The fee is extracted by minting new shares of the vault, thereby diluting vault participants. This is done at the time of harvest and calculated based off of time since the previous harvest.

For example, a vault takes about .0055% of deposits per day on average (2 (percent)/365 (days)):

  • It would dilute vault tokens by 5 * .0055% after 5 days without harvesting

  • It would dilute vault tokens by 7 * .0055% on the next harvest if it had not happened for 7 days

  • Vaults will only harvest if it is profitable after fees so that users won't withdraw less than their deposit

On the user interface, yield is displayed as net APY. This means that both fees and compounding returns are taken into consideration in the rates presented. Since harvests don't occur on a set basis, yield is estimated based off of historical data. This is done in the same way does APY calculations, hence make sure that you understand how yVault ROI works and you will understand tVaults ROI as well.

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