Management Fee

0% for First 3 Months, Then 2% Annually

Management fees cover the ongoing operational costs of running the vault: server infrastructure for 24/7 orderbook monitoring, API costs from exchanges, smart contract maintenance and upgrades, security audits and monitoring, strategy optimization and backtesting, and community support and documentation.

Our fee structure:

Months 1-3: 0% management fee

Why? Because we want early believers to earn maximum returns. You're taking a risk on a new vault. You deserve to keep 100% of net profits (minus only performance fees and exchange costs). This is our way of rewarding early adopters.

Month 4 onwards: 2% annually (0.5% per quarter)

This is among the lowest management fees in DeFi for actively managed strategies. It's charged on your total vault balance, not on profits.

How it's calculated:

Your vault balance: $10,000 Quarterly management fee: 0.5% Fee charged: $50 per quarter

This fee is automatically deducted from your vault share value at the end of each quarter. You don't need to do anything—it's handled programmatically.

Why 2% is reasonable:

Compare to alternatives:

• Traditional hedge funds: 2-3% management + 20% performance

• Robo-advisors: 0.25-0.50% (but no active management)

• Top DeFi vaults: 2-5% management + 10-20% performance

• Index funds: 0.05-0.20% (but no yield generation)

We're charging 2% management (lower than most active funds) + 20% performance (standard rate). And the first 3 months are completely free.

Real impact on returns:

Let's say the vault earns 400% gross APY in year one. Here's your actual net return:

• Gross return: 400%

• Exchange trading fees: ~15% (already deducted)

• Net return before our fees: 385%

• Management fee (0% for 3 months, 2% for 9 months): ~1.5% average

• Performance fee (20% of net): ~77%

• Your final net APY: ~306%

You're still earning 300%+ on your money. The fees are material but proportional to the value delivered.

Why we don't charge 0% management forever:

Because running a vault isn't free. We need to pay for infrastructure, security, development, and ongoing optimization. Charging 0% forever would force us to rely entirely on performance fees, which creates misaligned incentives (we'd be incentivized to take more risk for higher returns). The 2% management fee ensures we can operate sustainably while keeping your interests aligned with ours.