When investors redeem shares from your vault, the performance fee is not paid directly as cash. Instead, it is paid in newly minted vault shares, which you must redeem to realize as cash.
Detailed Flow:
Investor redeems shares → the system calls
calculateRedemptionResults.Realized PnL is computed; if positive,
calculateRedemptionPerformanceFeecalculates the manager’s fee.Fee is calculated in USD as:
Performance Fee (USD) = Investor Profit × PerformanceFeeCentiBeeps
USD fee is converted into vault shares using
CalculateLpTokensToMintOnInvestat the current share price.New shares are minted to the manager’s vault account via
MintLpTokens.Investor receives their redemption minus the fee in USD, which ensures the performance fee is deducted from the investor payout.
Key Points for Managers:
You earn shares, not immediate cash. Your share balance in the vault grows automatically.
To access the cash value, you need to redeem your minted shares yourself.
Aggregated performance fees per vault manager will be exposed in a future front-end update (post–Feb 26 launch).
Where to view redemption fee :
Example of redemption fees generated :
Summary : Performance fees are credited as vault shares that you must redeem to get cash. Your earnings grow automatically as your minted share balance increases.