The platform earns fees from two sources: a percentage of yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. on active reservesReserve The pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). , and a success fee on withdrawalsWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. .
Core user actions that are not charged:
A percentage of yield strategyYield Strategy Protocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn. returns on productive capital. The base rate is 10% of gross yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. .
Net yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. flows to the project for ecosystem use and optional buyback and burnBuyback and Burn Mechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply. .
A 1% fee applies when investors exit via withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. . On withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. , the investor claims project tokens and forfeits their depositDeposit The action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. capital — the fee is taken from that forfeited capital.
Investor forfeited capital
-> 99% used for project / buyback and burn
A referee is a third party (e.g. a launchpad partner or distributor) linked to a raise at configuration time. When a referee is linked, two additional fees apply:
+0.5% on withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. — the success fee increases from 1% to 1.5%, with the extra 0.5% going to the referee.
Investor forfeited capital (referee-linked raise)
-> 0.5% success fee -> referee
-> 98.5% used for project / buyback and burn
+5% on yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. — an additional 5% of gross yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. is taken and sent to the referee, on top of the base 10% platform feePlatform Fee Percentage of yield taken by the platform (10% at launch), allocated to the DAO. No fee is charged on core user actions (deposit, redeem, withdraw). .
Gross strategy yield (referee-linked raise)
-> 10% platform fee -> DAO
-> 5% referee fee -> referee
-> 85% net yield -> project
The DAO receives 10% of gross yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. and 1% on withdrawalsWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. . The yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. fee is split based on whether the project rents liquidity through the platform:
Without liquidity rental:
10% yield fee -> DAO operations
With liquidity rental:
-> 5% -> Hermes gauge incentives for the project
Gauge incentives are depositedDeposit The action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. proportionally into the project’s Hermes gauge.
No upfront listing fee is required. Project cost is implicit through yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. share and the withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. success fee paid by investors on exit.
yield cost = generated yield * platform fee %
Illustrative annual yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. fee example at 10% platform feePlatform Fee Percentage of yield taken by the platform (10% at launch), allocated to the DAO. No fee is charged on core user actions (deposit, redeem, withdraw). :
Investors pay a 1% success fee on withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. . On withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. , the investor receives project tokens and forfeits their depositDeposit The action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. capital — the fee is taken from that forfeited capital. No fee is charged on redeemRedeem Exercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. , where capital is returned in full.
There are no fees on depositsDeposit The action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. or project-token claims.
Investors receive principal protectionPrincipal Protection The structural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Protection is proportional to reserve backing, not a fixed dollar guarantee. and project token exposure. YieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. is not distributed to investor wallets.
The yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. fee percentage and withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. success fee may be adjusted over time based on market conditions and platform needs.
The fee model creates alignment across participants:
Platform earns more when raises are large, long-lived, and yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. -productive, incentivizing support for healthy raisesProjects benefit from preserving reserveReserve The pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). productivity and investor trust; both increase yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. and project credibility. Projects that rent liquidity receive gauge incentives funded directly from platform fees on their own raiseInvestors benefit from principal protectionPrincipal Protection The structural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Protection is proportional to reserve backing, not a fixed dollar guarantee. funded by strategy yieldYield Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. , not fees extracted from their capital. The success fee applies only on withdrawWithdraw Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. , not on redeemRedeem Exercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. Referees earn fees proportionalProportional Settlement Each investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first. to the raises they bring — aligning them with raise success and longevity
The platform’s revenue is a function of productive capital, not transaction volume or user churn, so every participant benefits when reservesReserve The pool of collateral backing investor positions in a raise. In normal operation, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). stay large and active.
