Returns & Fee Structure

Learn how fees and APYs work for Milk Vaults.

Milk Vault fees are specific to the individual vault, and either have no fees, or take either a management or performance fee. There are no deposit or withdrawal fees.

APYs

APYs displayed are always net of fees, meaning what is displayed is what you are actually earning. APYs are updated every time the vault has an exchange rate update, which is typically daily.

Management Fee

The management fee is automatically deducted on a pro-rata basis throughout the year, and the APY displayed already accounts for this fee. For example, if the vault shows a 12% APY with a 1% management fee, this means you'll earn a net return of 12% after the 1% management fee has already been subtracted. The fee isn't taken as a lump sum at year-end—instead, it's gradually deducted over time, so if you have $10,000 invested, approximately $0.27 per day (1% ÷ 365 days × $10,000) goes toward the management fee. This approach ensures transparency since the APY you see is exactly what you can expect to earn, with no surprise deductions. The fee deduction is taken whenever there is an exchange rate update, which is typically once daily.

Performance Fee

The performance fee is taken as a percentage of the profits generated, and the APY displayed is your net return after this fee has already been deducted. For example, if the vault shows a 10% APY with a 20% performance fee, this means you'll earn exactly 10% on your investment after the performance fee has been subtracted from your gains. Behind the scenes, the vault's strategy will have actually generated 12.5% in gross returns, but the vault takes 20% of those profits as the performance fee (20% × 12.5% = 2.5%), leaving you with the displayed 10% net return. Unlike a management fee that's charged regardless of performance, this fee is only applied to actual gains—so if the vault loses money or breaks even, no performance fee is charged. The fee deduction is taken whenever there is an exchange rate update, which is typically once daily.