> For the complete documentation index, see [llms.txt](https://gremlix.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gremlix.gitbook.io/docs/protocol/fees.md).

# Fees

## Overview

Gremlix vaults charge fees to sustain protocol operations and compensate strategy operators. All fees are accrued transparently on-chain during harvest events.

## Fee Types

### Performance Fee

Charged as a **percentage of ATH profits** generated by the strategy.

| Parameter    | Value                                |
| ------------ | ------------------------------------ |
| Basis        | New yield recognized at each harvest |
| When charged | On each successful harvest           |

Example: If strategy generates 100 USDC profit and performance fee is 20%, the vault retains 80 USDC for shareholders, and 20 USDC goes to the fee recipient.

### Management Fee

An annualized fee charged on **total assets under management (AUM)**, accrued continuously between harvests.

| Parameter    | Value                             |
| ------------ | --------------------------------- |
| Basis        | Total vault assets (annualized)   |
| When charged | Accrued pro-rata between harvests |

Example: On a vault with $1M TVL and 2% management fee, approximately $20,000/year is charged — roughly $54/day.

### Withdrawal Fee

An optional fee charged on **redemptions** to protect existing vault shareholders from short-term liquidity costs.

| Parameter    | Value              |
| ------------ | ------------------ |
| Basis        | Withdrawal amount  |
| When charged | On each redemption |

> Note: Withdrawal fee may be set to 0 depending on vault configuration.

### Points Fee(Perp DEX)

Protocol retains **10% of all DEX points** accumulated by the vaults as a protocol fee.

| Points earned by vault | Protocol fee      | User receives     |
| ---------------------- | ----------------- | ----------------- |
| 1,000,000 pts          | 100,000 pts (10%) | 900,000 pts (90%) |

Points are distributed proportionally to vault shareholders at the time of the DEX's TGE. The protocol fee is deducted before distribution — all APR figures and points estimates shown in the UI already reflect the net amount users receive.

## Fee Accrual Mechanism

Fees are implemented as **virtual shares** minted to the fee recipient rather than direct token transfers. This approach:

* Avoids transferring assets out of the vault (preserves capital for deployment)
* Dilutes existing shareholder positions proportionally
* Aligns fee recipient incentives (they hold shares, not just extracted tokens)

```
Harvest event:
  New profit = 100 USDC
  Performance fee = 20%

  → 20 USDC worth of shares minted to fee recipient
  → 80 USDC added to totalTrackedAssets for shareholders
  → Share price increases by 80 USDC / total shares
```

## Fee Recipient

Fees accrue to a configurable **fee recipient address** set by the vault owner. This address can be:

* A multisig treasury
* A DAO governance contract
* A revenue-sharing contract

## APR Figures Are Net of Fees

All APR figures shown in the Gremlix UI and documentation are **net of protocol fees** unless explicitly stated otherwise. The target APRs (80% for USDC vault, 15–25% for BTC vault) represent what users receive after fees.

## Summary Table

| Fee Type    | Charged On        | Frequency                      |
| ----------- | ----------------- | ------------------------------ |
| Performance | Profits           | Each harvest                   |
| Management  | AUM               | Continuous, settled at harvest |
| Withdrawal  | Redemption amount | On each withdrawal             |
| Points      | Distribution      | On each distribution           |