Protocol fees
Our protocol differentiates between 2 different fees that generate revenue for the Protocol:
The trader implements performance fees on his trading vault ranging from 10%-50%. Perpy takes 20% of those for the DAO. We take the price of the TradingVault share in High Water Mark as the basis for the performance fee.
This means that performance fees will only be deducted when the share price is above its historical high. After a total or partial close of a trade, a portion defined by the performance fees from the profit generated by the trader is sent directly in USDC to the Trader and the DAO.
Example: TradingVault starting with 1000 USDC ; Share Price: 1 USDC ; High Water Mark=1 USDC ; performance fees: 10%.
The trader achieves a 100% return after closing the trade. Then 10% from the profit (1000 X 0.1=100 USDC) is deducted due to performance fee. 20% those 10% is for the DAO (20 USDC) and 80% for the trader (80 USDC). The total TVL is 1900 USDC and the share price and High Water Mark are 1.9 USDC.
Each user exiting the Trading Vault must pay an adaptative exit fee:
- The Trading Vault has no trade in progress : the exit fee will be 0.3%
- The Trading Vault has a tradein progress :
- User's withdraw decrease the size of the trade : the exit fee will be 1.5%
- User's withdraw will close the trade in progress : the exit fee will be 5%
This fee goes to the Protocol.
These fees reductions apply to both the exit fees and the trader's share of performance fees sent to the Protocol :
xPRY | Discount |
|---|---|
≥ 500 | 3.0% |
≥ 2500 | 5.0% |
≥ 10 000 | 7.5% |
≥ 25 000 | 10.0% |
≥ 50 000 | 15.0% |
≥ 100 000 | 20.0% |
≥ 250 000 | 25.0% |
≥ 500 000 | 30.0% |
≥ 1 000 000 | 35.0% |
≥ 2 000 000 | 40.0% |
≥ 5 000 000 | 45.0% |
≥ 10 000 000 | 50.0% |
Some NFT may automatically gain you 1 extra level of discount...
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Last modified 5mo ago