Fee Flow
Multyr contracts are deployed on Arbitrum One. The system is currently in validation phase. Deposits are not open to the public. Behavior described on this page reflects the protocol's designed behavior; some mechanisms are active in shadow testing, others become active at public launch. See the Status page for details.
This page describes how value is generated, collected, and distributed within the Multyr protocol.
The system is fully on-chain, deterministic, and verifiable.
Overview
Multyr generates value through vault activity.
Users deposit capital into vaults, strategies generate yield, and the protocol applies fees on:
- deposits
- withdrawals
- performance (yield)
All fees are collected and routed on-chain through a deterministic system.
Fee Collection Points
Fees are applied at three points in the vault lifecycle:
| Event | Fee |
|---|---|
| Deposit | 0.25% |
| Withdrawal | 0.25% base |
| Instant Withdrawal | +1% penalty (1.25% total) |
| Force Withdrawal | higher penalty (strategy-dependent) |
| Performance | starting at 6% (varies by strategy) |
There is no management fee.
End-to-End Flow
The fee flow follows a deterministic path:
User → Vault → Fee Accrual → FeeCollector → Split → Destinations
More explicitly:
User Deposit / Yield / Withdrawal
↓
CoreVault (fee accrual)
↓
FeeCollector (core module)
↓
Split (on-chain, deterministic)
↓
Treasury / Ops / Safety / Rewards
FeeCollector (Core)
All fees are routed through the FeeCollector, a core module embedded in the vault architecture.
The FeeCollector:
- receives all protocol fees
- applies the configured split
- routes funds without discretion
There is no manual intervention or off-chain routing.
Fee Split
All fees are split according to on-chain configuration:
| Destination | Base | Range |
|---|---|---|
| Treasury | 70% | 65–80% |
| Operations | 29% | 25–30% |
| Safety Reserve | 1% | 1–5% |
The split is applied uniformly across all fee types. Ranges reflect governance-adjustable bounds; see Parameters — Fee Routing for the authoritative bounds.
Routing Layer
After the split:
Treasury
- receives the majority of fees
- represents protocol-owned capital
- grows over time with protocol usage
Operations (OpsCollector)
The operations share is routed through the OpsCollector:
- receives the operations portion of fees
- forwards them to the OpsWallet
- has no discretionary logic
This ensures transparent funding of:
- development
- infrastructure
- growth
Safety Reserve
A portion of fees is allocated to a Safety Reserve:
- acts as a limited risk buffer
- is not an insurance mechanism
- does not guarantee coverage of losses
Rewards Layer (Growth)
A portion of economic value is allocated to growth programs via the RewardsVault.
This includes:
- referral rewards
- partner incentives
- campaign distributions
Rewards are:
- computed off-chain
- distributed via Merkle epochs
- claimable on-chain
Deterministic Design
The fee system is designed to eliminate discretion:
- fee rates are stored on-chain
- split percentages are enforced on-chain
- routing is automatic
- no off-chain decision-making affects fee distribution
Governance Controls
Fee parameters can be adjusted by governance within predefined limits.
All changes require:
- 48h timelock delay
- ~24h parameter activation delay (post-seal target)
→ total minimum: ~72 hours
This ensures transparency and user protection.
Economic Role
Fees are the primary source of protocol value.
They:
- fund operations
- build treasury reserves
- support growth incentives
Over time:
→ increased vault usage → increased fees → treasury growth
Summary
- Fees are generated by vault activity
- Collected and routed on-chain
- Split deterministically
- Distributed across treasury, operations, safety, and rewards
The system is fully transparent and verifiable.