> For the complete documentation index, see [llms.txt](https://docs.yieldyak.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yieldyak.com/vaults/returns-and-fee-structure.md). # Returns & Fee Structure 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.yieldyak.com/vaults/returns-and-fee-structure.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.