Fees

Overview

StakeKit enables partners to monetize Staking and DeFi yields through Deposit Fees, Performance Fees, and Management Fees, offering flexible and tailored fee structures to meet diverse client needs.

Deposit Fees leverage FeeWrapper contracts on EVM chains and atomic fee transfer mechanisms on non-EVM chains. These systems seamlessly deduct a percentage of the user’s deposit and transfer it to the designated recipient, all within the same transaction. This approach preserves full DeFi composability, making Deposit Fees ideal for liquid staking assets and protocols with additional yield-generating opportunities.

For Management and Performance Fees, StakeKit leverages Allocator Vaults—ERC-4626-compliant smart contracts that support both single and multi-strategy configurations. These vaults enable clients to charge management fees based on the total assets under management (AUM) and performance fees on realized profits. Allocator Vaults integrate seamlessly with DeFi protocols via Adapter contracts, adhering to a minimally trusted architecture that ensures user control and transparency.

Clients can combine and customize fee types—deposit, performance, and/or management—at the level of individual yield opportunities. This flexibility enables powerful monetization strategies while maintaining a secure and intuitive user experience.

Fee Types

Deposit Fees

Solution: FeeWrapper Contract and Atomic Fee Transfer Mechanisms

DeFi Composability: Yes

Proposed Fee Range: 0.2% - 0.8%

Monetization: Immediate

Detailed Overview: Deposit Fees

Deposit Fees are applied at the point of user deposits, typically ranging between 0.2% – 0.8%. On EVM chains, these fees are managed through FeeWrapper smart contracts, which deduct a configurable fee before depositing the remaining amount into the target DeFi protocol or staking pool. For non-EVM chains, atomic fee transfer mechanisms are used, appending custom instructions to staking transactions to ensure seamless fee collection as part of the deposit process.

Unlike Performance and Management Fees, Deposit Fees preserve full DeFi composability. Users receive the specific receipt asset of the protocol they deposit into, making this fee structure particularly well-suited for liquid staking assets and vaults that can be further deposited into LP vaults or other yield-generating products.

StakeKit is the only platform in the market to provide Deposit Fees through FeeWrapper contracts and atomic fee transfer mechanisms.

For a detailed review of the security and implementation of StakeKit’s ERC-4626 Deposit FeeWrapper contract, you can find the latest audit here: StakeKit FeeWrapper - Zellic Audit Report.

Example:

Performance Fees

Contract Type: ERC4626 Allocator Vault

DeFi Composability: No

Proposed Fee Range: 10% - 30%

Monetization: Intermittent (applied at time of harvest)

Detailed Overview: Allocator Vaults

Performance Fees are applied exclusively to the yield generated by user deposits within Allocator Vaults. These fees are calculated and deducted during the reward harvesting process, ensuring that users are only charged based on realized profits and not their initial deposits. Commonly set between 10% and 30%, with 20% as the industry standard, these fees are transparently enforced during the harvest function.

During a harvest:

The vault calculates realized profits based on the performance of underlying strategies since the last harvest.
A percentage of these profits, as defined by the configured performance fee, is allocated as fees.
To apply the fees, new vault tokens are minted and transferred to designated fee recipients, representing their share of the profits.

By targeting only the generated upside, Performance Fees preserve the user’s initial deposit balance. This structure integrates seamlessly into APY calculations, making it particularly suitable for high-yield products where fee percentages are typically higher, optimizing revenue for clients.

Example:

Management Fees

Solution: Allocator Vault

DeFi Composability: No

Proposed Fee Range: 1% - 5%

Monetization: Annualized (applied at time of harvest)

Detailed Overview: Allocator Vaults

Management Fees are flat annualized rates applied to the total assets under management (AUM) within StakeKit’s Allocator Vaults, encompassing both user deposits and accrued rewards. These fees are calculated and collected during the reward harvesting process by minting new vault tokens, slightly diluting all participants. Typical rates range between 1% and 5% annually, with 2% as the industry norm.

During a harvest:

The vault calculates the accrued management fee based on the AUM and the time elapsed since the previous harvest.
New vault tokens are minted to cover the calculated fee, which dilutes the ownership percentage of all participants proportionally. While this reduces the share of the vault’s total value per token, it does not directly reduce the number of tokens held by any user.
Minted tokens are transferred to designated fee recipients, representing their share of the fees.

By applying fees proportionally over time, Management Fees offer predictable cost structures, making them ideal for long-term strategies, such as stablecoin yields.

Example: