> ## Documentation Index
> Fetch the complete documentation index at: https://yieldxyz.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees

> Monetize yield integrations with configurable fee structures

## Overview

Yield.xyz enables partners to monetize staking and DeFi yields through flexible, modular fee structures. Fees are enforced through audited smart contracts and can be configured at the integration or product level.

<CardGroup cols={2}>
  <Card title="Immediate monetization" icon="bolt">
    Deposit fees capture value at entry
  </Card>

  <Card title="Ongoing revenue" icon="chart-line">
    Performance and management fees generate recurring income
  </Card>

  <Card title="Full composability" icon="puzzle-piece">
    Deposit fees preserve DeFi composability with protocol-native tokens
  </Card>

  <Card title="Audited infrastructure" icon="shield-check">
    FeeWrapper and Allocator Vault contracts are independently audited
  </Card>
</CardGroup>

***

## Fee Types

<Tabs>
  <Tab title="Deposit Fees">
    **One-time fee at entry**

    Charged when users deposit into a yield. Deducted before funds enter the protocol.

    | Attribute               | Value                                              |
    | ----------------------- | -------------------------------------------------- |
    | **Typical range**       | 0.2% – 0.8% (up to 2% in some cases)               |
    | **When charged**        | At deposit                                         |
    | **DeFi composability**  | Yes — users receive protocol-native receipt tokens |
    | **Monetization timing** | Immediate                                          |
  </Tab>

  <Tab title="Performance Fees">
    **Fee on realized profits**

    Charged only on yield generated, not principal. Calculated and collected during harvest.

    | Attribute               | Value                             |
    | ----------------------- | --------------------------------- |
    | **Typical range**       | 10% – 30% (20% industry standard) |
    | **When charged**        | At harvest events                 |
    | **DeFi composability**  | No — requires Allocator Vault     |
    | **Monetization timing** | Intermittent                      |
  </Tab>

  <Tab title="Management Fees">
    **Recurring fee on AUM**

    Annualized fee on total assets under management, including deposits and accrued rewards.

    | Attribute               | Value                                      |
    | ----------------------- | ------------------------------------------ |
    | **Typical range**       | 1% – 5% annually (2% industry standard)    |
    | **When charged**        | Accrued continuously, collected at harvest |
    | **DeFi composability**  | No — requires Allocator Vault              |
    | **Monetization timing** | Annualized                                 |
  </Tab>

  <Tab title="Validator Revenue Share">
    **Share of validator commissions**

    For staking yields, partners receive a negotiated share of validator earnings.

    | Attribute         | Value                           |
    | ----------------- | ------------------------------- |
    | **Typical range** | 50% – 85% revenue share         |
    | **When charged**  | Ongoing, per validator earnings |
    | **Paid by**       | Validators                      |
  </Tab>
</Tabs>

***

## How Fees Are Applied

### Deposit Fees

<AccordionGroup>
  <Accordion title="EVM chains (FeeWrapper)">
    FeeWrapper smart contracts deduct the configured fee and deposit the remainder into the protocol — all in a single atomic transaction.

    * Partners configure deposit contracts, tokens, fee percentages, and recipients
    * Users receive protocol-native receipt tokens (stETH, aUSDC, etc.)
    * Full DeFi composability preserved
  </Accordion>

  <Accordion title="Solana, Cosmos, TON, Cardano">
    Atomic fee transfer mechanisms append custom instructions to the staking transaction. Fee deduction and deposit occur simultaneously.
  </Accordion>

  <Accordion title="Tron (non-atomic)">
    Fee is collected via a separate transaction that the user must sign before staking. This is the only chain where fee collection is not atomic.

    <Warning>
      Non-atomic fee collection on Tron requires an additional user signature and introduces slight friction.
    </Warning>
  </Accordion>
</AccordionGroup>

### Performance & Management Fees

Both fee types are applied through **Allocator Vaults** — ERC-4626-compliant smart contracts:

1. **At harvest**, the vault calculates realized profits (performance fee) and elapsed time (management fee)
2. New vault tokens are minted and allocated to fee recipients
3. Users are only charged on yield — principal is preserved

<Info>
  The `computedRewardRate` field in API responses reflects net APY after performance fees, providing transparent yield expectations.
</Info>

***

## Fee Examples by Product

### Staking (StakeKit)

| Fee Type                | Typical Range | Timing   |
| ----------------------- | ------------- | -------- |
| Deposit Fee             | 0 – 1%        | One-time |
| Validator Revenue Share | 50 – 85%      | Ongoing  |

### DeFi (DeFiKit via OAVs)

| Fee Type        | Typical Range | Timing     |
| --------------- | ------------- | ---------- |
| Deposit Fee     | 0 – 2%        | One-time   |
| Performance Fee | 5 – 20%       | On rewards |
| Management Fee  | 0.5 – 2%      | Annual     |

***

## Optimized Allocator Vaults (OAVs)

OAVs are pre-configured DeFi vaults with preset fee structures:

<Tabs>
  <Tab title="10% Performance Fee">
    **Set ID:** `4bea9274-7cef-4e43-995b-f35147469ede`

    * 10% performance fee on realized profits
    * Automatic reward reinvestment
    * Multiple underlying yield strategies
  </Tab>

  <Tab title="20% Performance Fee">
    **Set ID:** `e35de2d4-93e2-4cf8-b016-b0838fec1f20`

    * 20% performance fee on realized profits
    * Automatic reward reinvestment
    * Multiple underlying yield strategies
  </Tab>
</Tabs>

Fee configurations are queryable on-chain and through the API. Learn more about [OAVs](/documentation/oavs/overview).

***

## Payout Wallets

Fees are sent directly on-chain to configured payout wallet addresses. Configure one address per network:

```json theme={null}
{
  "payoutWallets": {
    "ethereum": "0x1234567890abcdef...",
    "base": "0xabcdef1234567890...",
    "cosmos": "cosmos1abc123..."
  }
}
```

<Warning>
  Ensure you control the payout wallet addresses. Fees are transferred on-chain and cannot be recovered if sent to an incorrect address.
</Warning>

***

## Configuration

Fees are configurable via dashboard or API:

<Steps>
  <Step title="Navigate to Fees">
    Go to **Settings → Fees** in the [Yield.xyz Dashboard](https://dashboard.yield.xyz)
  </Step>

  <Step title="Select fee types">
    Enable deposit, performance, and/or management fees
  </Step>

  <Step title="Set percentages">
    Configure rates globally or per-yield
  </Step>

  <Step title="Configure payout wallets">
    Set receiving addresses for each network
  </Step>
</Steps>

***

## Security & Audits

<CardGroup cols={2}>
  <Card title="FeeWrapper Audit" icon="shield-check">
    Audited by Zellic. No custody of user funds — only configuration control.

    [View Audit Report →](https://github.com/Zellic/publications/blob/master/StakeKit%20FeeWrapper%20-%20Zellic%20Audit%20Report.pdf)
  </Card>

  <Card title="Allocator Vault Audit" icon="shield-check">
    Latest Cantina audit: 0 critical, high, or medium issues.

    Request security review details from your account team.
  </Card>
</CardGroup>

***

## Best Practices

<CardGroup cols={2}>
  <Card title="Competitive rates" icon="scale-balanced">
    Research market rates before setting fees
  </Card>

  <Card title="Transparent disclosure" icon="eye">
    Clearly communicate fee structures to users
  </Card>

  <Card title="Test in staging" icon="flask">
    Verify fee logic before production deployment
  </Card>

  <Card title="Monitor payouts" icon="chart-line">
    Track fee collection and payout flows regularly
  </Card>
</CardGroup>

***

## Next Steps

<CardGroup cols={2}>
  <Card title="Plans & Pricing" icon="credit-card" href="/documentation/plans-limits/plans-tiers">
    View plan options and pricing tiers
  </Card>

  <Card title="Contact Us" icon="envelope" href="mailto:hello@yield.xyz?subject=Fee%20Configuration%20Support">
    Get help with fee configuration
  </Card>
</CardGroup>