# Fees & performance

Chamber vaults support four fee types. Managers pick the mix that suits the strategy. All fees are set at [vault creation](/manage/create-a-vault.md) and can be changed later, subject to a 14-day announcement period.

Chamber takes **10% of manager fees** as a protocol fee. The rate displayed to depositors is the full rate they pay — the manager receives 90% of it, Chamber receives 10%.

## The four fee types

### Entry fee

Charged on each deposit by reducing the shares the depositor receives. A depositor adding $10,000 to a vault with a 0.5% entry fee receives vault shares worth $9,950; shares worth the remaining $50 are minted to you and the protocol. Range: 0–2%.

### Exit fee

Charged on each withdrawal. Same shape as the entry fee, applied on the way out — shares are taken as the fee before the remaining shares are redeemed for assets. Range: 0–2%.

### Performance fee

Charged on the vault's share price appreciation above its **high-water mark** (HWM). The HWM is vault-level — the highest share price the vault has reached since the last performance fee was minted. It is not tied to any individual depositor's entry price.

* Typical range: 0–50%.
* When share price grows above the HWM, new shares are minted to the manager and Chamber (90/10) worth the manager's agreed cut of the vault-wide gain. Every existing holder's share count is unchanged; their share of the total supply dilutes by a matching fraction — that's how all depositors collectively pay the fee.
* If the vault drops below its HWM and later recovers, no performance fee accrues until the HWM is exceeded.
* Performance fees are automatically calculated and minted on every new deposit or withdrawal, and can be triggered manually by the manager.

Example (vault level): A vault has a share price of $1.00 at its high-water mark. Total supply is 1,000,000 shares. Share price grows to $1.20 (a 20% gain, vault-wide). With a 20% performance fee, shares worth 20% of the $200,000 NAV gain ($40,000) are minted — split $36,000 to the manager, $4,000 to Chamber. The new HWM becomes the post-mint share price.

This is socialised across every holder. A depositor who entered at $0.80 and a depositor who entered at $1.00 both experience the same dilution when the fee mints.

### Management fee

Charged continuously on the vault's total share supply, at the annualised rate. Charged regardless of performance.

* Range: 0–3% per year.
* Accrues per second and is minted whenever a deposit, withdrawal, or manual trigger causes accounting to run. A vault with $1M NAV and a 2% annual management fee accrues \~$54.79 per day of fee value.

## Fee caps

| Fee         | Cap         |
| ----------- | ----------- |
| Entry       | 2%          |
| Exit        | 2%          |
| Performance | 50%         |
| Management  | 3% per year |

Caps are enforced onchain. The Change Fees screen in the app shows the current limits at the point of any change.

## Chamber's 10% protocol cut

The 10% protocol cut applies across all four fee types, minted at the same time as the manager's 90%. The cut funds the [treasury](/treasury-and-protocol-economics/overview.md), which pays for development, audits, oracles, and other infrastructure. Depositors see the gross fee rate — the split itself is invisible to them.

## Worked example

A vault with:

* $1,000,000 starting NAV
* 2% management fee
* 20% performance fee
* 0.5% entry and exit fees

Over a year in which the share price grows 20% (vault ends above its high-water mark throughout), with $100k of deposits and $50k of withdrawals along the way:

| Fee type                           | Gross fee value | Manager (90%) | Chamber (10%) |
| ---------------------------------- | --------------- | ------------- | ------------- |
| Management (2% on avg NAV \~$1.1M) | \~$22,000       | \~$19,800     | \~$2,200      |
| Performance (20% on \~$200k gain)  | \~$40,000       | \~$36,000     | \~$4,000      |
| Entry (0.5% on $100k deposits)     | $500            | $450          | $50           |
| Exit (0.5% on $50k withdrawals)    | $250            | $225          | $25           |
| **Total**                          | **\~$62,750**   | **\~$56,475** | **\~$6,275**  |

Numbers rounded.

## Changing fees — 14-day announcement

Fee **increases** have a 14-day announcement period. You propose the new fee today; it takes effect 14 days later. Depositors have time to exit at the old rate if they don't want the change.

Fee **decreases** take effect immediately.

This is a depositor-protection measure and is not optional — the Guard System enforces it onchain.

## How fees accrue

**Every Chamber fee is settled in vault shares.** Entry, exit, performance, and management fees all mint new shares to the manager and the Chamber protocol (split 90/10) rather than skimming cash from the deposit or withdrawal asset.

* **Entry fees.** At deposit, the depositor receives fewer shares than their full deposit value would imply; the remaining shares are minted to the manager and protocol.
* **Exit fees.** At withdrawal, a portion of the shares being redeemed is taken as the fee before the rest is burned for assets.
* **Performance fees.** The amount owed is a function of time and the share price's run above the high-water mark — the contract can compute it at any moment. Shares are actually minted on the next deposit, withdrawal, or manual fee trigger, not continuously.
* **Management fees.** Same pattern: the owed amount scales per second against total vault supply, but the shares are only minted when deposit/withdrawal/manual accounting runs.

## Claiming fees

Fees live in your manager address as vault shares — a position in your own vault. To realise them:

* Hold the shares as a position, same as any other depositor.
* Or withdraw them, which works like any other withdrawal — single-asset or underlying basket. See [Withdrawals](/deposit/lockup-withdrawals.md).

Because fees are shares, not cash, they stay exposed to the vault's performance until you withdraw. If the vault grows, so does the value of your accrued fees; if it shrinks, your accrued fees shrink too. Many managers withdraw on a regular cadence to lock in fee value.

## Referral shares

A portion of your fees can be shared with referrers via two separate programs:

* **Offchain referral program** — share a % of your performance and management fees per depositor.
* **Onchain referral program** — share a % of your entry fees (all depositors).

Both are optional and off by default. See [Manager programs](/manage/manager-programs.md) for how they work and when each applies.

## Related

* [Create a vault](/manage/create-a-vault.md) — setting fees at creation.
* [Create a vault](/manage/create-a-vault.md) — where fees are set.
* [Oracles](/concepts/oracles.md) — how the NAV that performance fees are calculated against is priced.


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