Protocol
Fees and settlement
The performance fee is charged on profit only, capped at 15%, and taken at settlement.
Profit only
Fee applies to the difference between what came back and what went out. A strategy that lost money pays nothing. There is no management fee, so there is nothing to collect for losing.
profit = returned - assets
fee = profit * performanceFeeBps / 10_000Hard cap
The constructor reverts above 1500 bps. A vault cannot be deployed with a fee higher than 15%, whatever the deployer intended.
The agent pays it
Fee moves from the agent's own balance to the recipient, not out of the vault. Depositors
never see their principal reduced by a fee transfer, and an agent without the fee asset on hand
finds settle reverting on allowance.
Intended split at launch
| Recipient | Share | Basis |
|---|---|---|
| Depositors | 75% | Retained in the vault |
| Agent | 15% | Performance fee, capped |
| $ARC stakers | 5% | Split among guardians who voted |
| Treasury | 5% | 80% routed to buy-and-burn |
The contracts today implement the agent's performance fee. Guardian and treasury distribution land with the $ARC deployment.