Performance fee
The performance fee is a percentage of the yield earned by your vault position. It is taken by the vault curator.- Who pays: Vault depositors (deducted from yield, not principal).
- Who receives: The vault curator. For Dynamo-curated vaults, this is the Dynamo DAO.
- When it is taken: At the point yield is realized or accrued.
Example calculation
You have $10,000 deposited in a vault earning 10% APY. The vault has a 15% performance fee.
- Gross yield over 1 year: $1,000
- Performance fee (15%): $150
- Net yield to you: $850 (8.5% net APY)
Management fee
The management fee is an annualized percentage of your assets under management (AUM), accrued continuously in real time. It is charged by the vault curator.- Who pays: Vault depositors (accrued from the vault’s AUM).
- Who receives: The vault curator. For Dynamo-curated vaults, this is the Dynamo DAO.
- How it accrues: Continuously, block by block, based on your current vault balance.
Example calculation
You have $10,000 deposited in a vault with a 1% annual management fee.This fee is deducted from your vault position continuously, you will see your vault share value reflect this cost over time.
- Annual management fee: $100
- Monthly equivalent: ~$8.33
- Daily equivalent: ~$0.27
Combined fee example
| Variable | Value |
|---|---|
| Deposit amount | $10,000 |
| Gross vault APY | 10% |
| Performance fee | 15% |
| Management fee | 1% |
| Gross yield (1 year) | $1,000 |
| Performance fee cost | $150 |
| Management fee cost | $100 |
| Net yield to depositor | $750 |
| Net APY | 7.5% |
The APY displayed in the Dynamo app is the net APY after all vault fees are applied. You do not need to manually subtract fees from the displayed rate.
Fees vary by vault and curator
Not all vaults have the same fee structure. Vaults created by different curators may set different performance and management fee rates, or may charge only one of the two.Frequently asked questions
Are performance fees ever taken from my principal?
Are performance fees ever taken from my principal?
No. The performance fee is taken from yield only, which means it reduces the growth of your position over time, but it cannot take your principal below your original deposit (before any yield has been earned).
Who sets vault fees?
Who sets vault fees?
Vault fees are set by the curator at the time the vault is created or updated. For Dynamo DAO–curated vaults, fee changes require a governance vote.
Can fees change after I deposit?
Can fees change after I deposit?
Fee parameters can be updated by the curator within limits set at vault creation. Any material change would be subject to governance for Dynamo-curated vaults and would be communicated in advance.
What is a curator?
What is a curator?
A curator is the entity responsible for managing a vault’s strategy, choosing which markets to allocate to, setting risk parameters, and collecting fees.