Teahouse Finance charges Platform (entry/exit), Management, and Performance fees.

Fees for LP Vaults, Portfolio Vaults, and Managed Vaults are calculated slightly differently. The respective fees and examples are detailed separately in the tabs below.

Platform Fees

Entry Fee: None No Entry Fee is charged for LP Vaults

Exit Fee: 0.2% of the ShareTokens withdrawn The Exit Fee is assessed by subtracting 0.2% of the ShareTokens being withdrawn. Example: 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.

Management Fee

Management Fee: 1.5% (annualized) The Management Fee is 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: 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

Note: LP Pairs with boosted rewards charge a Management Fee of 2.5% (annualized).

Performance Fee

Performance Fee: 15% of swap fees earned The Performance Fee is collected when the trading fees earned by the LP strategies are reinvested into the LP pool. Example: 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.

Last updated