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1. Fees

Dew Vault has a set of configurable fees that are all enforced and accounted for on-chain:

  • Deposit fees – charged when capital enters the vault.
  • Withdrawal fees – charged when capital exits the vault.
  • Management fees – time-based fees on the value of assets under management.
  • Performance fees – fees on positive strategy performance.
  • Protocol fee cuts – a share of certain fees routed to a protocol-level account.

All of these fees are driven by the vault's configuration and tracked in the vault's internal state.

2. Deposit fees

When: On deposit processing – both sync and async.

What: A percentage of the incoming deposit amount.

2.1 Behaviour

When a user deposits an asset:

  1. Gross deposit amount is received by the vault.
  2. The vault looks up:
    • deposit_fee_bps for that asset.
    • protocol_deposit_fee_cut_bps for that asset.
  3. The fee is split into:
    • Vault fee portion
    • Protocol fee portion
  4. The net deposit (after fees) is converted into shares at the current share price.

This means:

  • Users pay the deposit fee.
  • The fee is not minted as shares; it’s accumulated as fee income for the vault and protocol.

3. Withdrawal fees

When: On withdrawal (redemption), both sync and async.

What: A percentage of the asset amount being paid out.

3.1 Behaviour

When a user redeems shares for an asset:

  1. The vault computes the gross asset amount from shares and share price.
  2. It looks up:
    • withdrawal_fee_bps for that asset.
    • protocol_withdrawal_fee_cut_bps for that asset.
  3. It splits the withdrawal fee into:
    • Vault withdrawal fee.
    • Protocol withdrawal fee.
  4. It transfers the net asset amount (after fees) to the user (or credits it as claimable).

As with deposit fees:

  • Users pay the withdrawal fee.
  • Fee amounts are not included in the user's payout; they go to the vault and protocol fee buckets.

4. Management fees

When: Continuously over time, but crystallized at discrete points.

What: A percentage per year on assets under management.

Management fees are:

  • Expressed as management_fee_bps per year.
  • Applied to the vault's TVL over time using the accountant logic.
  • Crystallized into fee claims (shares or assets) when the appropriate function is called.

The exact crystallization mechanics live in the accountant module and depend on your internal design (e.g. minting additional shares to the fee recipient vs reserving base assets), but conceptually:

The longer assets stay in the vault, the more management fees accrue, at a rate defined in bps per year.

5. Performance fees

When: On positive performance, at crystallization events.

What: A cut of profits above a reference baseline.

Performance fees are controlled by:

  • performance_fee_bps
  • Optional:
    • High-water mark flag (fee only on gains above previous peaks).
    • Performance hurdle (performance_hurdle_bps) – minimum rate to beat before fees apply.
    • Crystallization interval (perf_fee_interval_nanosec).