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

# Fee Structure

> Entry, exit, management, and performance fees — enforced by smart contracts

# Fee Structure

All fees on Tilt Protocol are enforced by smart contracts. No hidden charges, no off-chain deductions — everything is transparent and auditable on-chain.

## Fee Types

### Entry Fee

Charged when an investor deposits into a vault.

|                  |                                  |
| ---------------- | -------------------------------- |
| **Default**      | 0.10%                            |
| **Maximum**      | 1.00%                            |
| **Collected in** | tiltUSDC (deducted from deposit) |

### Exit Fee

Charged when an investor withdraws from a vault.

|                  |                                     |
| ---------------- | ----------------------------------- |
| **Default**      | 0.50%                               |
| **Maximum**      | 2.00%                               |
| **Collected in** | tiltUSDC (deducted from withdrawal) |

### Management Fee

Charged continuously on assets under mirroring (AUM), annualized.

|                       |                                                      |
| --------------------- | ---------------------------------------------------- |
| **Default**           | 0.50% per year                                       |
| **Maximum**           | 2.00% per year                                       |
| **Collection method** | Share dilution (new shares minted to fee recipients) |

### Performance Fee

Charged on gains above the high-water mark (HWM). This prevents double-charging after drawdowns — fees are only collected on new all-time highs.

|                       |                           |
| --------------------- | ------------------------- |
| **Default**           | 15.00% of gains above HWM |
| **Maximum**           | 30.00%                    |
| **Collection method** | Share dilution            |

## Fee Flow Example

```
Investor deposits 10,000 tiltUSDC
  └─ Entry fee: 0.30% → 30 tiltUSDC to FeeManager
  └─ Net deposit: 9,970 tiltUSDC → vault mints shares

Portfolio grows 20% over 1 year (AUM: ~12,000 tiltUSDC)
  └─ Management fee: 0.50% of AUM accrued continuously via share dilution
  └─ Performance fee: 15% of gains above HWM via share dilution

Investor withdraws full position
  └─ Exit fee: 0.50% deducted from gross withdrawal
  └─ Vault auto-liquidates tokens → returns tiltUSDC
```

## Revenue Split

Fee revenue is split between the protocol treasury and the vault's curator:

|             | Protocol | Curator |
| ----------- | -------- | ------- |
| **Minimum** | 10%      | 0%      |
| **Maximum** | 100%     | 90%     |

The curator's share is configured at vault creation and enforced by `FeeManager`. The protocol always retains at least 10%.

### Curator Vaults (User-Created)

The curator sets their fee share at creation time. For example, a curator requesting 80% share means:

* 80% of management and performance fees → curator wallet
* 20% of management and performance fees → protocol treasury

*Note: All entry and exit fees go directly to the protocol treasury.*

## Why This Model

Traditional hedge funds charge "2-and-20" (2% management, 20% performance) with no transparency. Tilt's fee model is:

* **Lower** — defaults are well below industry standard
* **Capped** — maximums enforced by contract code
* **Transparent** — all fee calculations are on-chain and auditable
* **Fair** — high-water mark prevents performance fee abuse