# Fees

### Performance Fee

AlphaFi charges a **20% performance fee** on the yield generated. Taken at every auto-compound event, deducted from rewards before they're compounded.

Your principal is never touched. The fee is purely on profits.

If a vault earns you $100 in gross yield, $20 goes to the protocol and $80 gets reinvested into your position.

**Fee distribution**

The 20% performance fee is split into:

* **50%** → buys ALPHA on the open market, sent to **ALPHA Reward Reserves**. These get rewarded to ALPHA Locked Vault stakers.
* **50%** → buys more ALPHA, adds liquidity to the ALPHA-SUI pool, and builds a protocol reserve.

So every dollar of yield AlphaFi generates becomes ALPHA buy pressure and long-term value for protocol participants.

### No Withdrawal Fee

Standard vaults have **no withdrawal fee**. Exit anytime, get your principal plus accumulated yield back (yield is already net of the performance fee).

The one exception is the **ALPHA Locked Vault** — a 100-day lock with a 50% penalty for early exit. That's a tokenomics primitive, not a standard vault.

### No Zap Fee

For single-sided deposits and withdrawals that need an internal swap, the swap goes through the Cetus aggregator. The aggregator charges a small routing fee (a few basis points).

AlphaFi doesn't add a zap fee on top.

Want to skip swap costs entirely? Use dual-asset deposit/withdraw on LP vaults.

### No Deposit Fee

Depositing is free. You get receipt tokens equal in value to what you deposited, minus only network gas and any swap slippage from a zap-in.

### Fees built into displayed APY

The APY on every vault page is **already net of the 20% performance fee**.

This is deliberate. Some yield protocols quote gross APY and bury the fee in fine print. AlphaFi quotes the net number. What you see is what you earn.

<details>

<summary>Example: Fee breakdown</summary>

A USDC-USDT vault earns the following over 30 days:

* Trading fees: $40 in USDC + USDT
* CETUS rewards: $25 worth
* SUI rewards: $15 worth
* **Total gross yield: $80**

At harvest:

* CETUS and SUI get swapped into USDC and USDT
* 20% performance fee = **$16** goes to the protocol
* **$64 net** gets compounded back into the vault

If you held 1% of the vault, you earned $0.64 net over those 30 days. Your USDC + USDT balance grew by exactly that — no claim needed.

</details>


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