Vault fees explained

The amount of the fees depends on the specific vault. Refer to the vault page on the website to view the Fees.

Two types of fees apply to each vault:

  • Reward fee. Every time the vault harvests generated income, from 0% to 5% of the funds gathered are retained by the Locus Vault. The percentage of fee depends on the specific vault, e.g., xETH has a 5% reward fee while xDEFI has 0%.

  • Annual streaming fee. Vault also retains from 0.5% to 1.5% annually of the total assets the Vault has. This fee percentage also depends on the specific vault, for example, xUSD has 0.5% streaming fee and xDEFI has 1.5%.

The fee is extracted by minting new shares of the vault to the Locus treasury balance. This is done at the time of harvest, and calculated based on time since the previous harvest.

Example:

xETH vault had 100 ETH and earned 1ETH in a month so 5% of the 1 ETH earned (0.05 ETH) will be taken by Locus treasury as a reward fee. The annual streaming fee for one month will be 0.7%/12months * 100ETH =0.05833 ETH

So in our example from the entire vault with a balance of 100 ETH about 0.1 ETH will be collected per month, which is about 0.1%

With this example, you can assume that if you invested 1 ETH your monthly fee will be about 0.1% of that, i.e. 0.001 ETH.

Disclaimer: This is an example for your better understanding, take it as a basis for your own calculations.

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