Protocol Fees

The protocol charges a 1% annual management fee, and a 10% performance fee on profits, collected weekly.

If the weekly strategy is profitable, the weekly performance fee is charged on the profits premiums earned.

A portion of the fees charged are sent into the treasury and a portion is used to burn the governance token. See below in the DAO section for a full breakdown of protocol revenues and uses.

The protocol earns a 10% performance fee on Vault profits per each weekly Epoch. Performance fees are deducted from the weekly profits out of the net investable amount available prior to the new Epoch Auction. There are no fees for deposits or withdrawals.

Fees will be calculated in terms of the collateral provided in each vault.

For example, if Alice deposits 1 BTC and earns a return of 0.25 BTC. At the end of Epoch, the performance fee is calculated. The performance fee would be: 0.25 * 0.1 = 0.025 BTC

If deposit is in USD, performance fee is calculated as 10% of the ending weekly Epoch profits.