💵Fees and Revenue

Ashley Capital & DeFi Vaults Fees and Revenue Structure

Below is a comprehensive overview of the management fee and performance fee charged by our Vault, as defined in the smart contract code. We recommend all prospective users read this thoroughly to fully understand how fees are assessed, how much they cost, and how they affect your investments.

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Fee Types

1. Management Fee (Annual 1.5%)

2. Performance Fee (15% on Profits)

1) Management Fee

• Purpose: Covers ongoing operational expenses (e.g. monitoring, audits, dev maintenance).

• Rate: 1.5% per year

• Assessment Period: The contract implements monthly accrual by converting the annual rate to a monthly rate (annual ÷ 12). Specifically, it mints additional shares to the Vault owner once per month, equivalent to that month’s portion of the management fee.

• Fee Interval: By default, 30 days .

How It’s Calculated

1. Monthly Fee Rate = annual fee ÷ 12

   • For a 1.5% annual fee, monthly fee = 1.5% ÷ 12 ≈ 0.125%.

2. Monthly Fee in Assets = totalAssets * monthlyFeeRate

3. Shares Minted = (monthly fee in assets × 1e18) ÷ pricePerShare()

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2) Performance Fee - Users only get charged this fee during a withdraw if they have profited off the fund.

• Purpose: The contract charges a 15% fee on profits (above user cost basis).

• Trigger: Whenever a user withdraws from the Vault, the contract checks if the value of the withdrawn shares is greater than the user’s average cost basis.

• Mechanics:

  1. Calculate user’s profit = (current share value) – (user’s cost basis for those shares).

  2. If profit > 0, apply 15% fee on that profit.

  3. Deduct that fee from the user’s withdrawal proceeds and send it to the owner.

How It’s Calculated

1. User’s cost for X shares = (avgCostPerShare × X) / 1e18.

2. Current amount owed = calculateAmount(X) = market value of those shares at withdrawal.

3. Profit = current amount owed – user’s cost.

4. Fee = profit × performanceFeeRate (performanceFeeRate = 0.15 scaled by 1e18).

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