How it works
Fees & yield
What you earn, where it comes from, and exactly what the vault takes along the way. Every fee here is disclosed and shown on the vault page.
Where the yield comes from#
A vault's return is built from three things:
- Trading fees— a cut of every swap that routes through the position's price range.
- TOPAZ emissions— reward tokens streamed to the staked liquidity position by the pool's gauge.
- Compounding — those earnings are regularly converted back into your position, so they start earning too. Frequent compounding is what turns a raw APR into a higher effective APY.
APR vs. APY#
These two numbers look similar but mean different things:
- APR (estimated)— a forward-looking estimate based on the pool's current gauge reward rate. Because the vault concentrates liquidity, it tends to earn more emissions per dollar in range than the headline full-range gauge rate, so this estimate is best read as a conservative floor. We subtract the performance and harvest-call fees to show a net figure.
- APY (realized)— the actual compounded return, reconstructed from the vault's share-price history. It accounts for real in-range time, compounding frequency, and trading fees. A vault needs a little operating history before a meaningful APY is available.
Estimates are estimates
The fees#
Topaz vaults charge fees only on earnings, plus the unavoidable mechanical costs of moving tokens. The exact rates are set per vault and configured on-chain — each vault page shows its live values (and they're readable on-chain via the strategy's fee getters).
Performance fee#
A percentage of harvested rewards, taken at each compound. It is charged on yield only — never on your deposited principal — and funds protocol operations. If the vault earns nothing, no performance fee is taken. The current rate is shown on each vault page.
Harvest call fee#
A small slice of each harvest paid to whoever triggers it. Harvesting is permissionless, and this fee is the incentive that keeps keepers (or anyone) compounding the vault on time. It comes out of rewards, alongside the performance fee.
Swap slippage (internal)#
When the strategy converts rewards into the pair, or a zap swaps one token for another, that swap has price impact and a small slippage tolerance. It's a mechanical cost of trading, not a fee Topaz collects.
Deposit entry cost#
Fitting a deposit into a concentrated position can carry a small, disclosed entry cost (a sliding amount that depends on how much your deposit skews the position). Balanced, two-token deposits minimize it; large single-token zaps incur the most. See how a zap is priced for the details. There is no fee to withdraw.
Minimize what you pay