Fees

Two main fees: performance fee on yield, redemption fee on unstaking.

Performance Fee (6%)

What it covers

Funds protocol operations: contracts, validator monitoring, audits, the liquidity buffer for instant unstaking.

It's 6% of yield, not 6% of principal. Your staked SUI is never touched.

How it works

At the end of each epoch, when rewards come in, 6% goes to the protocol. The other 94% adds to the pool and raises the exchange rate.

If network yield is 3.5% APR:

3.5% × (1 − 0.06) = 3.29% APR for stSUI holders

Redemption Fee (0.01%)

What it covers

The cost of instant unstaking — mostly the liquidity buffer.

0.01% of the redeemed SUI. Redeeming 1,000 stSUI worth 1,000 SUI = 0.1 SUI fee.

Where it goes

Part of the redeem fee is redistributed back to the pool, where it boosts yield for remaining stakers. The rest is kept by the protocol.

When one user unstakes, a portion of their exit fee improves yield for everyone else. (Exception: if it's the very last unstake — no remaining stakers to redistribute to.)

Example

Hold 1,000 stSUI now worth 1,050 SUI (after rewards). Unstake:

• Gross value: 1,050 SUI
• Redeem fee (0.01%): 0.105 SUI
• Received: 1,049.895 SUI

The 6% performance fee was already deducted at each epoch as rewards came in — that's why your 1,000 stSUI is at 1,050 SUI instead of higher.