Fees
Platform Fees
Velvet applies different fees depending on the trading method used.
For onchain trading: Classic Trade fee is 0.5%. Turbo Buy and Sell, Advanced Orders (including TP/SL, DCA, and Wallet Buys / Sells) - 1%.
For perpetuals: 0.1%.
Trading fees are reduced according to your cashback tier, determined by veVELVET balance and 30-day trading volume; at the highest tier, fee reductions can reach up to 100% of trading fees paid. Cashback is a rebate of fees paid under current promotional program terms, and is not income, yield, or a return on holding any token.
Portfolio Management Fees
Vault fees are set by and paid to independent vault creators, not to Velvet. Vault managers can set up the following types of fees for their vaults:
Management Fee:
Continuous constant fee defined as an annualized % of the total value locked (TVL)
Calculated & charged during deposits / withdrawals or when the vault manager calls the function to charge the fees
Entry / Exit Fees:
Fixed fee defined as a % of deposit / withdrawal
Charged every time the user deposits or withdraws
Performance Fee:
Defined as a % of the difference between the asset's current price and its high watermark
Calculated & charged during deposits / withdrawals or when the vault manager calls the function to charge the fees
Important: performance fees can be charged only on realized gains, i.e., vault managers must "take profit" by converting their portfolio into WETH, Stablecoins or other major assets
All fees are charged in a form of vault tokens (index tokens) that are being minted according to the calculations.
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