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Fee parameters are configured at vault creation and can be updated by the admin at any time. See Vault Configuration Updates for how to modify fees after creation. When the vault realizes a profit, that profit increases the overall asset value. However, not all of this profit is immediately available for fee collection. A portion is “locked” and gradually becomes available (or “unlocked”) over time. Fees are only charged on new profits that exceed a historical peak — this is known as the high water mark.

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Locked Profit

To prevent sandwich-ing or frontrunning on gains, newly realized profit is initially locked. Over a set duration, this locked profit degrades until it is fully unlocked: Locked Profit=(Degradation Duration−Time ElapsedDegradation Duration)×Previous Locked Profit\text{Locked Profit} = \left(\frac{\text{Degradation Duration} - \text{Time Elapsed}}{\text{Degradation Duration}}\right) \times \text{Previous Locked Profit} Once the degradation period has passed, the locked profit becomes zero.

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High Water Mark

The high water mark represents the highest asset-per-share value the vault has ever reached. Fees are only applied to the profit that exceeds this mark: Eligible Profit={0,if rcurrent≤rHWM(rcurrent−rHWM)×Total Shares,if rcurrent>rHWM\text{Eligible Profit} = \begin{cases} 0, & \text{if } r_{\text{current}} \leq r_{\text{HWM}} \\ \left(r_{\text{current}} - r_{\text{HWM}}\right) \times \text{Total Shares}, & \text{if } r_{\text{current}} > r_{\text{HWM}} \end{cases} Where rcurrentr_{\text{current}} is the current asset-per-share ratio and rHWMr_{\text{HWM}} is the high water mark ratio.

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Fee Calculation

Once eligible profit is determined, performance fees are calculated based on a preset fee rate (expressed in basis points): Fee Amount=Eligible Profit×Fee Rate (bps)10000\text{Fee Amount} = \frac{\text{Eligible Profit} \times \text{Fee Rate (bps)}}{10000} If no eligible profit exists (i.e., the current performance does not exceed the high water mark), no fee is charged.

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Fee Splitting

The calculated fee amount is split between admin and manager. Suppose the admin’s share is defined by aa basis points and the manager’s by mm basis points:
  • Admin Share:
Admin Share=Fee Amount×aa+m\text{Admin Share} = \frac{\text{Fee Amount} \times a}{a + m}
  • Manager Share:
Manager Share=Fee Amount−Admin Share\text{Manager Share} = \text{Fee Amount} - \text{Admin Share}

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Loss Handling

If the vault incurs a loss, the total asset value is reduced by the loss amount. In this scenario, no performance fee is collected, and the loss directly impacts the vault’s asset value.

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Additional Fee Types

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Issuance Fee

A fee charged when users deposit into the vault. This fee is deducted from the LP tokens minted to the depositor. LP Minted=Deposit Amount×(10000−Issuance Fee bps)10000×Total LP SupplyTotal Assets\text{LP Minted} = \frac{\text{Deposit Amount} \times (10000 - \text{Issuance Fee bps})}{10000} \times \frac{\text{Total LP Supply}}{\text{Total Assets}}

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Redemption Fee

A fee charged when users withdraw from the vault. This fee is deducted from the assets returned to the withdrawer. Assets Received=Proportional Assets×(10000−Redemption Fee bps)10000\text{Assets Received} = \text{Proportional Assets} \times \frac{(10000 - \text{Redemption Fee bps})}{10000}

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SDK Integration

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Harvest Accumulated Fees

import { VoltrClient } from "@voltr/vault-sdk";
import { Connection, PublicKey } from "@solana/web3.js";

const connection = new Connection(rpcUrl);
const client = new VoltrClient(connection);

// Harvest fees (can be called by anyone, fees go to designated recipients)
const harvestIx = await client.createHarvestFeeIx({
  harvester: harvesterPubkey,
  vaultManager: vaultManagerPubkey,
  vaultAdmin: vaultAdminPubkey,
  protocolAdmin: protocolAdminPubkey,
  vault: vaultPubkey,
});

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Calibrate High Water Mark

The admin can calibrate the high water mark to reset the performance fee baseline: 
const calibrateIx = await client.createCalibrateHighWaterMarkIx({
  vault: vaultPubkey,
  admin: adminPubkey,
});

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Query Fee Information

// Get accumulated admin fees (in LP tokens)
const adminFees = await client.getAccumulatedAdminFeesForVault(vaultPubkey);
console.log("Admin fees:", adminFees.toString());

// Get accumulated manager fees (in LP tokens)
const managerFees = await client.getAccumulatedManagerFeesForVault(vaultPubkey);
console.log("Manager fees:", managerFees.toString());

// Get high water mark information
const hwm = await client.getHighWaterMarkForVault(vaultPubkey);
console.log("Highest asset per LP:", hwm.highestAssetPerLp);
console.log("Last updated:", new Date(hwm.lastUpdatedTs * 1000));

// Get current asset per LP ratio
const assetPerLp = await client.getCurrentAssetPerLpForVault(vaultPubkey);
console.log("Current asset per LP:", assetPerLp);

// Get LP supply breakdown
const lpBreakdown = await client.getVaultLpSupplyBreakdown(vaultPubkey);
console.log("Circulating LP:", lpBreakdown.circulating.toString());
console.log("Unharvested fees:", lpBreakdown.unharvestedFees.toString());
console.log("Unrealised fees:", lpBreakdown.unrealisedFees.toString());
console.log("Total LP:", lpBreakdown.total.toString());