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Berafarm charges four types of fees. This page explains what each one is, why it exists, and how it is collected. Exact rates vary per vault and per tranche, the authoritative numbers for any vault are displayed on its page in the app [and in the parameter table below / Contract Addresses page]. There are no fee types other than the four described here.

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Entry Fee

A one-time fee deducted from your deposit before capital is deployed into strategies.
  • Charged at the moment of deposit, the remainder is deployed atomically in the same transaction.
  • Rates differ by tranche: as a reference, the HONEY vault currently charges 0.1% on Stable deposits and 0% on Alpha deposits.
  • Visible on-chain as a transfer to the protocol fee address at the top of every deposit transaction.
Alpha’s lower (or zero) entry fee is deliberate: Alpha depositors are taking the vault’s first-loss risk, and the fee structure reflects that.

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Exit Fee

A fee on withdrawal, but only if you exit early. Exit fees apply within a time window after your deposit and drop to zero once the window passes.
  • Reference values for the HONEY vault: Stable - 0.5% if withdrawn within 30 days of deposit, zero after. Alpha - 1% if withdrawn within 7 days, zero after.
  • Long-term depositors pay no exit fee at all.
Why it exists: withdrawals force the vault to unwind live positions, burning LPs, executing swaps, redeeming lending positions in the same transaction, and rapid churn imposes those costs on everyone who stays. The time-windowed fee makes short-term hot money pay for its own turnover while costing patient capital nothing. Note that the exit fee and exit slippage are separate: unwinding involves live swaps, so withdrawers also bear the market impact of their own exit regardless of fee.

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Performance Fee

A fee on profits, charged only to the Alpha tranche, and only above a high-water mark.
  • Stable pays no performance fee. Its yield waterfall allocation is delivered whole.
  • Alpha pays [20%] of gains above its high-water mark (HWM). The HWM is the highest value Alpha has previously reached. After a drawdown, Alpha pays no performance fee until it has fully recovered past its prior peak. We only earn performance fees on new highs, never on recovering ground you already paid for.
  • The fee is charged at the moment the waterfall allocates residual profit to Alpha, so Alpha yields you see are net of it.
This is the fee that pays for active management, and the HWM is what keeps it honest.

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Management Fee

“Berafarm charges no management fee; the protocol earns from entry/exit and performance fees only.”

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How ongoing fees are collected: shares, not assets

Performance fees are collected by minting share tokens to the protocol treasury, never by pulling assets out of strategies. Two consequences:
  1. Your capital never leaves the strategies to pay fees. Deposits stay fully deployed and earning at all times.
  2. The treasury holds the same exposure you do. Protocol fee revenue is denominated in vault shares, so it rises and falls with vault performance, our incentives and yours point the same direction.
On-chain, fee accrual appears as periodic mints of the tranche tokens to the fee address.

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Fee governance and limits

  • Fee parameters are set per vault and adjustable by the vault manager role.
  • The contracts enforce a hard cap of 50% on any fee parameter, an absolute ceiling, not a target; current rates are far below it and the cap exists as an upper bound on what is even configurable.
  • Fee changes are announced X days in advance in the Strategy Log and on our social channels.

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Worked example: gross to net

Illustrative, using the HONEY vault reference rates. Alpha deposit of 10,000 HONEY, vault performance allocating Alpha a gross 20% for the year, withdrawn after 90 days (outside the 7-day exit window): The same math for Stable: 0.1% entry, no performance fee, waterfall target yield, no exit fee after 30 days.