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Fees

In Struct protocol, we charge a performance fee to both Senior and Junior tranches upon maturity. This fee is calculated based on the accrued yield for each vault. The accrued yield is the difference between the tokens at maturity and the initial tokens that were investable in the vault.

Formulae​

Senior Tranche Performance Fee​

The formula to calculate the performance fee for the Senior vault ((_srPerfFee)) is:

_srPerfFee=.performanceFee×(_tokensAtMaturitySr−_tokensInvestableSr)\_srPerfFee = .performanceFee \times (\_tokensAtMaturitySr - \_tokensInvestableSr)

Junior Tranche Performance Fee​

The formula to calculate the performance fee for the Junior vault ((_jrPerfFee)) is:

_jrPerfFee=.performanceFee×(_tokensAtMaturityJr−_tokensInvestableJr)\_jrPerfFee = .performanceFee \times (\_tokensAtMaturityJr - \_tokensInvestableJr)

Total Performance Fee​

The total performance fee ((totalPerfFee)) can be calculated as follows:

totalPerfFee=_srPerfFee+_jrPerfFeetotalPerfFee = \_srPerfFee + \_jrPerfFee

Variables​

  • .performanceFee: The percentage of accrued yield that will be charged as a performance fee.
  • _tokensAtMaturitySr: The total amount of tokens in the Senior vault at the time of maturity.
  • _tokensInvestableSr: The initial amount of investable tokens in the Senior vault.
  • _tokensAtMaturityJr: The total amount of tokens in the Junior vault at the time of maturity.
  • _tokensInvestableJr: The initial amount of investable tokens in the Junior vault.
info

Currently, the performanceFee has been set to 0 for all the vaults. The GOVERNANCE can invoke the setPerformanceFee() method to update the fee in the future.