> ## 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.
# 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](/documentation/advanced-setup/dashboard/discretionary-fees), and for automating it, [Programmatic Access](/documentation/advanced-setup/programmatic-access). [Trade](/documentation/trade/monetization) and [Borrow](/documentation/borrow/monetization) 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](/documentation/platform/vaults/index) and [Off-the-shelf OAVs](/documentation/platform/vaults/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](/documentation/earn/core-concepts/yield-metadata#mechanics) 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](/documentation/advanced-setup/dashboard/discretionary-fees) for setting these up from the dashboard, and [Programmatic Access](/documentation/advanced-setup/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](/documentation/advanced-setup/dashboard/payout-wallets). Transaction and activity reporting for reconciliation is covered in [Reporting](/documentation/advanced-setup/reporting).
## Next steps
Set deposit, management, and performance fees from the dashboard.
Configure fees across projects from your own backend.
Tell yield.xyz where your fees should go, per network.
How Optimized Allocator Vaults enforce management and performance fees.
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