Performance & Management Fees

Allocator Vaults support deposit, performance, and management fees, allowing clients to configure their preferred fee structure in order to monetize the integrations:

• Performance Fees: Charged on realized profits generated by underlying strategies. During the harvesting process, the vault calculates the profits earned since the last harvest, deducts the configured fee percentage, and mints new vault tokens to allocate to predefined fee recipients. This ensures users are only charged on realized yield, preserving their initial deposits.
• Management Fees: Applied periodically as a flat annualized rate on the total assets under management (AUM), including both user deposits and accrued rewards. The vault calculates the fees based on the elapsed time since the previous harvest and mints new vault tokens to represent the fee amount. These tokens are allocated to fee recipients, slightly diluting all participants proportionally.

Fees are set in configureVault():

struct AllocatorVaultConfig {
uint256 depositFee;
uint256 performanceFee;
uint256 managementFee;
address feeRecipient;
bool hasCooldown;
}

Performance Fees

The performance fee is charged based on the vault’s gains (profits generated by the underlying strategy) since the last fee collection.

How it works:

• The vault periodically computes the profit since the last "stamp" (checkpoint).
• Fee is only charged on gains (gain) since the last harvest.
• Fees accumulate over time until harvested when collected fee is minted as new shares to the vault’s feeRecipient.

Management Fees

The management fee is an ongoing fee, continuously calculated based on total assets managed by the vault. It's charged regardless of performance (even if there's no profit).

How it works:

• Management fee (config.managementFee) continuously accrues as a percentage of the total assets managed.
• Calculated based on the total underlying asset balance (totalUnderlyingStamp) and elapsed time since last harvest.
• Fee is converted to vault shares and minted to the feeRecipient and applies even without positive returns.