Fees and costs
A DTF's actual fee configuration and transaction quote determine what you pay. The percentages below are worked examples, not confirmed live beta rates or a protocol-wide fee schedule. If the app does not clearly show the applicable terms, confirm them with the team before depositing.
Performance fees
The current design charges performance fees on gains above a DTF-level high-water mark. It accounts for fees by minting DTF shares to the configured fee recipients. That increases the share supply and reduces existing holders' percentage ownership.
Fees are valued using the DTF's base asset. They are not beta DXP rewards, and LPs do not need to buy DXP to pay them.
A high-water mark helps avoid charging again for recovery below the DTF's previous fee-adjusted threshold. It is a vault-wide calculation, not a separate profit calculation for every wallet. Your entry price can differ from that threshold.
Worked example: 20% performance fee
Assume no deposits or withdrawals during the period, and ignore rounding and execution costs.
Starting net assets at the high-water mark
1,000 USDC
Assets before performance fees
1,100 USDC
Gain above the high-water mark
100 USDC
Performance fee at 20%
20 USDC equivalent
Value attributable to the original LP shares after the fee
1,080 USDC
The 20 USDC equivalent is represented by newly minted fee shares. It is not necessarily transferred out of the vault as cash at that moment.
If the protocol receives 25% of the performance fee, its portion is 5 USDC equivalent and the manager's portion is 15 USDC equivalent. That 25% is a split of the 20 USDC fee, not an additional 25% charge on the LP's profit.
Both the 20% fee and the 25% split are illustrative. Confirm the deployed DTF configuration.
Other costs
Network gas
Base transactions, paid in ETH where applicable
Trading fees and slippage
Swaps, order execution and market liquidity
Perpetual trading and funding
Hyperliquid positions; funding can be paid or received
Cross-chain/settlement costs
Moving strategy collateral where required
Other disclosed DTF charges
Only where explicitly configured and disclosed for that DTF
No fixed gas price, universal zero-fee policy or guaranteed net APY is specified here. Do not infer that an old creation-form field is an active charge without checking the final configuration.
Beta campaign rewards are separate: see bDXP and rewards.