> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hedgin.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees

> What you pay, how fees affect your shares, and when rates can change.

Fees reduce the value of your shares. Check your vault's rates before depositing. The limits below are maximums, not the rates every vault charges.

## How fees are shared

Your return comes from gains on the vault's investments, after fees.

This example uses a **20% performance fee**, with **20% of that fee going to Hedgin**. The split applies to eligible profit after the vault's loss recovery adjustment, before management fees. Rates are illustrative. Check your vault's actual rates.

![Performance fee example. With a 20% performance fee and a 20% Hedgin share of that fee, users keep 80% of eligible profit, the manager receives 16%, and Hedgin receives 4%, before management fees.](https://mintcdn.com/hedgin/-HbzVS6vDMYtxxkV/images/fee-sankey.svg?fit=max\&auto=format\&n=-HbzVS6vDMYtxxkV\&q=85\&s=26a812997a8ce4e902bcada390c942fa)

20%of the manager's performance fee goes to Hedgin

1%example platform management fee per year, on vault assets

Management fees are separate from this profit split. Both the manager and Hedgin can charge them on vault assets.

Your profit stays in the vault and increases share value until withdrawal. Manager and Hedgin fees accrue as shares.

## Performance fee

The manager can charge up to **50% of eligible profit** after the vault's loss recovery adjustment. Hedgin can receive up to half of that performance fee, without an additional performance charge to depositors.

## Management fees

The manager can charge up to **5% per year** on total assets. Hedgin can charge a platform management fee of up to **2% per year** in addition to the manager's fees.

Management fees are prorated over time and can apply even when the vault makes no profit. Fees accrue at valuations as shares owed to the manager or Hedgin.

## Loss recovery

The vault carries losses and fees not covered by gains forward before charging performance fees on later gains. Hedgin can configure a loss-forgiveness rate that reduces the carried loss over time. This can allow performance fees before all historical losses are recovered. Confirm the vault's applicable fee terms before depositing.

## Fee changes

If either manager fee increases, both requested rates wait at least **2 days** and activate at a subsequent valuation. Updates that only lower fees apply immediately.

The valuation that activates an increase still charges the preceding period at the old rate.


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