Fee share

Depositor in vault which holds veLVLQ token are eligible for performance fee share and management fee share distributed by LevelQ protocol from the vault. The standard incentive fee applied on yield bearing asset in vaults is from 10% to 25% accrued at withdrawal into treasury or every month. The standard streaming fee applied on non-yield bearing asset in vault is from 0% to 2% of vault AUM applied monthly or upon withdrawal. The more veLVLQ held by the user the higher the fee share. It follow the formula thereafter for each fee type:

For incentive fee: The fee share is capped at 50% of the current incentive fee. We use the share of voting power times a scaled multiplier to calculate the fee share. The chart below represent in X axis the % ownership of voting weight and in Y axis the fee share.

Fee share ratio vs voting share

This means that the maximum fee share will be 50% of the incentive fee normally levied on yield generated from deposits for a user owning 50% or more of the voting share of veLVLQ.

For streaming fee: the fee share is also capped at 50% of current streaming fee. We use the share of voting power held by the users to calculate the fee share.