> ## 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 Configuration

> Setting curator fees and understanding the revenue split

# Fee Configuration

As a fund manager (curator), you earn a share of the fees collected by your vault. This page explains how to configure your fee share and how revenue flows.

## Setting Your Fee Share

When creating a vault, you specify your **curator fee share** — the percentage of total fees you receive. The remaining goes to the protocol treasury.

| Curator Share | Protocol Share | Notes                             |
| ------------- | -------------- | --------------------------------- |
| 0%            | 100%           | Altruistic — all fees to protocol |
| 40%           | 60%            | Conservative — balanced split     |
| 60%           | 40%            | Standard — majority to curator    |
| 80%           | 20%            | Maximum — highest curator take    |

The curator share applies to **all fee types** (entry, exit, management, performance).

<Warning>
  The curator fee share is set at vault creation and cannot be changed afterward. Choose carefully.
</Warning>

## Fee Collection Mechanics

### Entry and Exit Fees

Collected in tiltUSDC at the time of deposit or withdrawal. Sent directly to the `FeeManager`, which splits and distributes to curator and protocol wallets.

### Management Fees

Accrue continuously via **share dilution**. The protocol mints new vault shares to fee recipients proportional to the annualized rate applied to total AUM. This dilutes all shareholders equally.

### Performance Fees

Accrue via share dilution, but only when the vault's share price exceeds the **high-water mark** (previous all-time high). This means:

* No performance fees during drawdowns
* No double-charging — fees only on new gains
* HWM resets only when a new peak is reached

## Revenue Example

Consider a fund with 80% curator share:

```
Fund AUM: 100,000 tiltUSDC
Annual management fee: 0.50% → 500 tiltUSDC equivalent in shares
  └─ Curator receives: 400 tiltUSDC worth of shares (80%)
  └─ Protocol receives: 100 tiltUSDC worth of shares (20%)

Performance above HWM: 20,000 tiltUSDC gain
Performance fee: 15% → 3,000 tiltUSDC equivalent in shares
  └─ Curator receives: 2,400 tiltUSDC worth of shares (80%)
  └─ Protocol receives: 600 tiltUSDC worth of shares (20%)
```

## Best Practices

* **Start with 40-60%** if you're building a track record — lower fees attract more depositors
* **Use 80%** only if you have a proven strategy or strong brand — investors accept higher fees for demonstrated alpha
* **Remember**: your seed deposit earns returns too — you're invested alongside your depositors