Fees
One fee. Only on profit.
| Fee | Amount |
|---|---|
| Performance fee | 10% — only on profit above your high-water mark |
| Deposit fee | 0 |
| Withdrawal fee | 0 |
| Management fee | 0 |
High-water mark (HWM) means: the fee only applies to new highs in your vault's NAV. If your NAV drops and recovers, you pay nothing on the recovery — a fee only kicks in again once you clear the old high.
Worked example
| Step | Vault NAV | Fee? |
|---|---|---|
| Deposit | $1,000 | — (this is your starting high-water mark) |
| Grows to | $1,200 | 10% fee on the $200 gain = $20 |
| Drops to | $1,000 | No fee (below the $1,200 high-water mark) |
| Recovers to | $1,150 | No fee — still below the $1,200 high-water mark |
| Grows to | $1,300 | 10% fee, but only on the $100 above the previous $1,200 high = $10 |
The fee is skimmed on-chain from the profit itself, before it's credited back to your vault — you never pay out of pocket.
-20% with $XER
Pay the performance fee in $XER and get a 20% discount (effectively 8% instead of 10%). The $XER you pay is burned.
Where the fees go — on-chain
The fee split is hard-coded in the fee_splitter contract and verifiable on-chain:
| Share | Use |
|---|---|
| 40% | Buyback & Burn — buys $XER on the market and burns it |
| 40% | veXER stakers — fee share for lockers |
| 20% | Treasury — development & operations |
This makes $XER structurally deflationary: real protocol revenue permanently reduces supply.