Fees
Multyr applies a set of predefined fees to certain operations.
All fees are enforced on-chain and applied deterministically during execution.
Fee Structure
| Fee Type | Amount | When It Applies |
|---|---|---|
| Deposit | 0.25% | On each deposit into the vault |
| Standard Withdrawal | 0.25% | When withdrawing through the queue |
| Instant Withdrawal | 1.25% | 0.25% base + 1% penalty for immediate access |
| Force Withdrawal | Variable | Includes base fee and additional penalty depending on strategy conditions |
| Management | 0% | No management fee is currently applied |
| Performance | Starting at 6% | Applied to strategy profits, varies by strategy |
Fee Design
The fee system reflects how the protocol operates:
- Base fee (0.25%) applies to deposits and standard withdrawals
- Instant withdrawals include an additional penalty for immediate liquidity
- Force withdrawals may incur higher penalties depending on strategy conditions
- No management fee is applied to idle capital
Fees are applied automatically as part of transaction execution.
Performance Fees
Performance fees apply only to positive returns generated by strategies.
They:
- are applied only to profits
- do not affect deposited principal
- are reflected in the vault's net asset value
The base rate starts at 6% and may vary depending on the specific strategy.
Example:
If a strategy generates 1,000 USDC in profit and the performance fee is 6%:
- 60 USDC is collected as a fee
- 940 USDC remains in the vault and accrues to depositors
Fee Distribution
Fees collected by the protocol are distributed across multiple components.
The distribution is defined at the protocol level and may vary within predefined limits.
Current Distribution
| Destination | Share | Purpose |
|---|---|---|
| Treasury | ~70% | Protocol development and operations |
| Operations | ~29% | System and execution costs |
| Safety Reserve | ~1% | Limited loss-absorption buffer |
Notes
- percentages shown represent the current configuration
- distribution may change over time through governance
- changes are subject to protocol-defined constraints
Safety Reserve
A portion of fees is allocated to a Safety Reserve.
The Safety Reserve:
- may act as a limited loss-absorption mechanism
- does not guarantee capital protection
- should not be considered insurance
Governance
Fee parameters are defined at the protocol level.
Certain components, such as:
- performance fees
- strategy-specific penalties
- fee distribution
may vary over time depending on configuration and governance decisions.
Changes are not applied instantly and are subject to governance processes.
Fee Examples
Examples for illustration:
- Deposit 10,000 USDC → 25 USDC fee, 9,975 USDC deposited
- Standard withdrawal of 10,000 USDC → 25 USDC fee, 9,975 USDC returned
- Instant withdrawal of 10,000 USDC → 125 USDC fee, 9,875 USDC returned
- Force withdrawal of 10,000 USDC → higher fee depending on strategy conditions
Important Considerations
- deposit and standard withdrawal fees are fixed
- instant withdrawal penalties are fixed
- force withdrawal penalties may vary depending on strategy conditions
- performance fees apply only to profits
- fee distribution may change within predefined limits