Protocol Fees
LevelQ Finance operates with a transparent and strategic fee structure designed to support the protocol's continuous development, incentivize positive user outcomes, and maintain a sustainable financial model. The fee system is carefully crafted to align the success of the protocol with that of its users, ensuring that fees are only applied in scenarios where users benefit.
Streaming Fee
Streaming fees are ongoing charges applied to the assets allocated within LevelQ’s vaults. These fees are accrued continuously as a percentage of the Total Value Locked (TVL) in the vaults. The purpose of these fees is to cover the operational costs associated with managing and securing the assets on the platform, including infrastructure maintenance, smart contract audits, and development costs.
Application: The streaming fee is designed to be minimal to ensure that it does not significantly impact the user’s returns. This fee is deducted from the assets in real-time, allowing the protocol to maintain liquidity and fund its operations without requiring large, lump-sum charges.
Incentive Fee
Incentive fees are performance-based fees applied to the profits generated by yield-bearing strategies on the LevelQ platform. These fees are only charged when the platform successfully generates returns for the user, ensuring that LevelQ’s incentives are directly aligned with those of its users.
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