Fees

Teahouse Finance charges Platform (entry & exit), Management, and Performance fees. Please see the individual vault pages on our dApps (Pools / Easy-Earn) for specific fee details.

The types of fees and examples are detailed separately in the tabs below.

Platform Fees

Platform Fees

Platform Fees consist of Entry Fees and Exit Fees.

Entry Fees: None

No Entry Fee is charged for any of Teahouses Vaults.

Exit Fees:

• LP/Portfolio Vaults: 0% - 0.2% of the ShareTokens withdrawn Exit Fees are assessed by subtracting X% of the ShareTokens being withdrawn. Example (using a 0.2% Exit Fee): When withdrawing 1,000 ShareTokens, 2 ShareTokens will be deducted first, and the remaining 998 ShareTokens will be exchanged back to Asset Tokens A and B at the current share price and ratio.

• Easy-Earn/Managed Vaults: 0% - 0.1% of the withdrawn amount Exit Fees are assessed by subtracting X% of the amount being withdrawn Example (using a 0.1% Exit Fee): If a user wants to withdraw $1,500, the exit fee would be 0.1% of $1,500, which is $1.5. The total amount they would receive after deducting the exit fee would be $1,500 - $1.5 = $1,498.5.

Management Fees

Management Fees

• LP/Portfolio Vaults: 1.5%-2.5% (annualized) Management Fees are collected by minting additional ShareTokens upon new deposits. Whenever new liquidity is added, additional ShareTokens are created to represent fees. The newly minted ShareTokens should represent 1.5% of the previous ShareTokens in the vault (when annualized). Example (using a 1.5% Management Fee): If an LP pool has 10,000 ShareTokens and receives a 100 ShareTokens deposit 8 hours after the last deposit. The new ShareToken balance will become 10,000 (original) + 100 (new deposit) + 0.13699* (prorated newly-minted fees of the original for 8 hours). *There are 8760 hours in a year. 1.5%/8760 * 8hrs = 0.0013699% per 8 hours. 10,000 * 0.0013699% = 0.13699

• Easy-Earn/Managed Vaults: 1.7% - 1.8% (annualized) The Management Fee is collected every Round. Easy-Earn rounds run on a monthly basis, and most Managed Vault rounds run on a daily basis. Example (using a 1.7% Management Fee) Divide 1.7% by 365 days to get a daily fee charged: 0.004658% of the assets currently in the vault. If a user's investment grows to $1,500 USDC at the end of 3 Rounds, the management fee would be (0.004658% of $1,500) * 3, which is $0.21 for the three Rounds (days).

Performance Fees

Performance Fees

• LP Vaults: 10%-20% of swap fees earned Performance Fees are collected when the trading fees earned by the LP strategies are reinvested into the LP pool. Example (using a 15% Performance Fee): The LP position earned 200 TokenA and 60 TokenB in fees. Out of these earnings, 85% (170 TokenA and 51 TokenB) will be compounded back into the LP pool. A performance fee of 15% (30 TokenA and 9 TokenB) will be sent to TeaDAO’s Treasury.

• Portfolio Vaults: 15% of profits Performance fees are only assessed when the vault makes profits. The Portfolio Vault incorporates Teahouse's Gradient Decay Profit-Sharing (GDPS) Model to ensure fair fee collection. Read more about the GDPS Model here.

• Easy-Earn/Managed Vaults: 10%-20% of profits The Performance Fee is calculated each Round based on the profits generated. Example (using a 15% Performance Fee): If a user's assets grew from $1,000 USDC to $1,100 USDC in 1 Round, then they made $100 in profits. The performance fee would then be 15% of $100, or $15 for the Round. The value of the user's remaining assets will be $1,100 - $15 = $1,085 USDC.