Monetization

How Earn fee configurations work: fee-taking mechanisms, where they’re configured, and where collected fees are sent.

Monetization on Earn works through fee configurations: fee terms in basis points (bps), attached to a project and a yield and applied in the transactions yield.xyz constructs or by the vault the yield runs through. This page covers the concepts; for the dashboard workflow see Discretionary fees, and for automating it, Programmatic Access. Trade and Borrow have their own monetization models.

Fee-taking mechanisms

Each yield’s mechanics.possibleFeeTakingMechanisms flags which fee types you can configure to earn on it: depositFee, managementFee, performanceFee, and validatorRebates. Not every mechanism applies to every yield, and a yield with a flag set to false can’t take that fee type.

Mechanism	What it means	How it’s applied
Deposit fee	A cut taken from the amount at entry, once	Deducted when the enter transaction is constructed: split out of the deposit amount before the remainder reaches the protocol. On EVM yields this runs through a FeeWrapper contract; other chains add a fee-transfer instruction to the same transaction. For yields that run through an OAV, the vault takes the deposit fee by minting fee shares to the fee recipient
Management fee	An annualized fee on assets under management, accruing regardless of performance	Charged inside an Optimized Allocator Vault (OAV): collected at harvest as newly minted vault shares to the fee recipient
Performance fee	A fee on realized gains only, principal untouched	Charged inside an OAV at harvest, computed against the last checkpoint. For a small set of supported Solana lending positions, yield.xyz also tracks a performance-fee position off-chain to compute this
Validator rebates	A share of validator revenue, for staking yields	Flagged only on staking yields whose provider has revenue sharing enabled. It is not a field in feeConfigurations[], so you don’t configure it with bps

Management and performance fees run through an OAV, apart from the Solana lending case above. See OAV Overview and Off-the-shelf OAVs for how OAVs are built and deployed; this page doesn’t restate vault internals.

mechanics.fee (on the same YieldDto) reports the deposit, withdrawal, management, and performance fee percentages charged to the user for the yield itself. It is read-only metadata about the yield’s own terms, separate from the fee configurations you attach as an integrator. See Yield metadata for the full field.

Where fee configuration lives

A fee configuration is scoped to a project and a yield, never to a single request. Every enabled, fee-supported yield can carry one or more feeConfigurations[] entries, each with:

Field	What it is
id	The fee configuration’s identifier
default	Whether this is the configuration applied when a request doesn’t pick one
depositFeeBps / managementFeeBps / performanceFeeBps	The configured rate for each fee type, in basis points
allocatorVaultContractAddress	The OAV backing this configuration, when one exists
statistics	Partner-scoped metrics (TVL, position count) for assets that entered through this configuration

A balance can carry a feeConfigurationId, showing which configuration that position is under. An enter, exit, or manage action can optionally pass a feeConfigurationId argument to pick a non-default configuration when a yield has more than one; omitting it applies the project’s default. Bps values themselves are never request parameters: they’re set once, at the project and yield level, through the dashboard or the Programmatic API.

Configuration lifecycle

A fee configuration moves from REQUESTED through PROCESSING to LIVE; confirm changes to a live configuration with yield.xyz. Only LIVE configurations appear in feeConfigurations[]. See Discretionary fees for setting these up from the dashboard, and Programmatic Access for doing it from your own backend.

Payout

Collected fees are sent on-chain to the fee recipient address yield.xyz sets on the LIVE fee configuration, at the moment each mechanism collects them; nothing accrues with yield.xyz for later withdrawal. Register a payout wallet for each network you charge fees on so yield.xyz knows where to direct them: see Payout Wallets. Transaction and activity reporting for reconciliation is covered in Reporting.

Next steps

Discretionary fees

Set deposit, management, and performance fees from the dashboard.

Programmatic access

Configure fees across projects from your own backend.

Payout wallets

Tell yield.xyz where your fees should go, per network.

OAV overview

How Optimized Allocator Vaults enforce management and performance fees.