Fees

All fee parameters are encoded in the vault's smart contract and visible before any deposit. The maximums are hardcoded on-chain and can't be overridden by vault operators, so the worst-case fee is always knowable upfront.

Fee types

Management fee Charged on total AUM at each settlement. Accrues linearly: (assets × rate / BPS) × (timeElapsed / 1 year). Capped at 10% annually.

Performance fee Applies only to profits above the high-water mark. Calculated as (pricePerShare - highWaterMark) × totalSupply × rate / BPS. Capped at 50% on profits above the high-water mark.

Entry / exit fees Flat percentage on deposits and withdrawals. Entry is deducted from minted shares, exit from redeemed assets. Capped at 2%. One important detail: rates can only decrease after deployment, they can never be raised.

Haircut fee Applies only to synchronous redemptions when that mode is active. Capped at 20%.

Protocol fee Lagoon takes a percentage of the fees collected by the vault. Fixed at 10%, with an on-chain cap of 30%.

Summary

Fee	Applied to	On-chain cap
Management	Total AUM per settlement	10% / year
Performance	Profits above high-water mark	50%
Entry / Exit	Each deposit or withdrawal	2%
Haircut	Synchronous redemptions	20%
Protocol	Vault fees collected	30%

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