Fee Model

MetaVaults charge a performance fee on positive yield generated during each epoch. There is no management fee or deposit/withdrawal fee.

Performance fee

The performance fee is calculated as a percentage of the profit (positive yield) between the previous epoch's saved underlying value and the new underlying value reported at settlement.

profit = newSavedBalance - lastSavedBalance
fees   = profit * feesInBps / 10000

• feesInBps is set at vault initialization and can be changed by the owner.

• The maximum allowed fee is 30% (3000 bps), enforced by the MAX_FEES constant.

• If newSavedBalance <= lastSavedBalance (no profit or a loss), no fees are charged.

Example

Value	Amount
lastSavedBalance	1,000,000 USDC
newSavedBalance	1,050,000 USDC
feesInBps	1000 (10%)
Profit	50,000 USDC
Fee	5,000 USDC
Net balance after fees	1,045,000 USDC

Fee collection during settle()

Fees are collected atomically during the settle() call:

1. The accountant reports newSavedBalance — the total vault underlying value after the epoch's strategies.

2. The contract computes the fee and subtracts it from the balance used for share pricing.

3. The fee amount is transferred from the accountant to the treasury address via safeTransferFrom.

4. Pending deposit and redeem requests are then processed using the post-fee balance.

The fee is taken before processing pending deposits and redeems. This means depositors who requested during the epoch do not dilute the fee, and redeemers receive their share based on the post-fee net asset value.

Treasury

The treasury is the address that receives all collected fees. It is set at vault initialization and can be updated by the vault owner via:

function setTreasury(address _treasury) public onlyOwner

The treasury cannot be set to address(0).

Max drawdown protection

To protect depositors from catastrophic losses (whether from strategy failure or a compromised accountant key), the vault enforces a max drawdown check during settlement.

if (newSavedBalance < lastSavedBalance * (BPS_DIVIDER - _maxDrawdown) / BPS_DIVIDER) {
    revert MaxDrawdownReached();
}

• The default max drawdown is 30% (3000 bps).

• If the accountant attempts to report an underlying value that exceeds the max drawdown, the settle() transaction reverts.

• The max drawdown can be adjusted by the owner via setMaxDrawdown(uint16).

Example

With a max drawdown of 3000 bps (30%) and a lastSavedBalance of 1,000,000 USDC, the minimum acceptable newSavedBalance is 700,000 USDC. Reporting anything below this reverts the transaction.

Fee parameter changes

function setFee(uint16 newFee) external onlyOwner

• Cannot exceed MAX_FEES (3000 bps / 30%).