Strategy Fee
Last updated
Last updated
The protocol implements the traditional asset management business model into protocol. Fund manager will be earning the management fee based on the annual fee setup. The protocol calculates the fee based on each block since last charge and total value locked in the vault.
Strategy fees are charged at the vault level and are cumulative per block. It is then incurred each time a deposit or withdrawal request is made. The % shown is on an annual basis. For example, a platform fee of 0.50% per annum represents 0.0000000476% for all blocks in the network.
Strategy fee charges for the 60 days = (1.00% / 10,512,000 blocks * 60 * 28800) * 1mm
1 block = 3 sec
1 day = 28800 blocks
1 year = 365 * 28800 blocks = 10,512,000 blocks
Strategy Fee = 1%
Fund TVL: 1,000,000 for 60 days