Fee Mechanism

2. Fee Mechanism

Prime Vaults employs a transparent, two-layer fee structure designed to align protocol sustainability with user value creation. Fees are applied only when yield is generated or when capital exits the system, ensuring that users incur costs strictly in proportion to the benefits they receive.

Performance Fee

A 15% performance fee is applied to all strategy-generated yield during the harvesting process.

• It does not affect the user Principal and Reward

• It ensures the protocol is incentivized to maximize long-term, sustainable performance.

This fee structure aligns Prime Vaults with industry standards while maintaining attractive net yields for depositors.

Platform Fee

Prime Vaults applies a 1.5% annualized platform fee, which is assessed only when a user withdraws.

Formula:

$$\text{Platform Fee} = \text{Principal} \times 1.5\%\times \frac{\text{deposit days}}{365}$$