The platform earns fees from two sources: a percentage of yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. on active reservesReserveThe pool of collateral backing investor positions in a raise. Under normal conditions, each investor's proportional share equals their original deposit. In a shortfall, proportional settlement distributes what remains fairly. Reserve accounting is per-raise (isolated)., and a success fee on withdrawalsWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured)..
Core user actions that are not charged:
A percentage of yield strategyYield StrategyProtocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee and the project ecosystem budget. If buyback is enabled, yield surplus can also fund buyback and burn. returns on productive capital. The base rate is 10% of gross yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project..
Net yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, 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 BurnOptional mechanism where released capital from withdraws and yield surplus can be used to buy back and burn project tokens, reducing circulating supply. Enabled by the raise creator at raise creation..
A 1% fee applies when investors exit via withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured).. On withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured)., the investor claims project tokens and forfeits their depositDepositThe action of investing collateral into a raise. The raise contract receives collateral, routes it to the yield strategy, and mints a pFT position NFT. A live oracle price feed determines USD notional for FT allocation via deposit-time conversion. capital; the platform deducts the fee from that forfeited capital.
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 withdraw The success fee increases from 1% to 1.5%, with the extra 0.5% going to the referee.
+5%
on yield An additional 5% of gross yield is taken and sent to the referee, on top of the base 10% platform fee.
The DAO receives 10% of gross yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. and 1% on withdrawalsWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured).. The yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, 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. Without liquidity rental, the full 10% goes to DAO operations. With liquidity rental, 5% goes back to the project raising funds as Hermes gauge incentives and 5% to DAO operations.
Gauge incentives are deposited proportionally into the project’s Hermes gauge.
Investor forfeited capital
Base 1% DAO
99% Project Treasury
+ Referee 1% DAO
0.5% Referee
98.5% Project Treasury
Gross strategy yield
Base 10% DAO
90% Net to Project
+ Referee 10% DAO
5% Referee
85% Net to Project
Where the 10% goes
5% Gauge Incentives
5% DAO Ops
Without liquidity rental: full 10% to DAO operations
Projects pay no upfront listing fee. Their cost is implicit in the yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. share and the withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured). success fee.
yield cost=generated yield×platform fee %
Illustrative annual yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, 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 FeePercentage of yield taken by the platform (10% at launch), allocated to the DAO. No fee on core user actions (deposit, redeem, withdraw).:
Investors pay a 1% success fee on withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured).. On withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured)., the investor receives project tokens and forfeits their depositDepositThe action of investing collateral into a raise. The raise contract receives collateral, routes it to the yield strategy, and mints a pFT position NFT. A live oracle price feed determines USD notional for FT allocation via deposit-time conversion. capital; the platform deducts the fee from that forfeited capital. No fee applies on redeemRedeemExercise principal protection and exit to collateral. Implemented by the divest contract function. Permissionless and on-chain., where capital is returned in full.
There are no fees on depositsDepositThe action of investing collateral into a raise. The raise contract receives collateral, routes it to the yield strategy, and mints a pFT position NFT. A live oracle price feed determines USD notional for FT allocation via deposit-time conversion. or project-token claims.
Investors receive principal protectionPrincipal ProtectionStructural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Proportional to reserve backing, not a fixed dollar guarantee. and project token exposure. The platform does not distribute yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. to investor wallets.
The yieldYieldReturns generated by the yield strategy on deposited collateral. Variable, not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. fee percentage and withdrawWithdrawClaim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for optional buyback and burn (if configured). success fee are subject to adjustment.
The fee model aligns all participants:
Platform Earns more when raises are large, long-lived, and yield-productive, incentivizing support for healthy raises
Projects Benefit from preserving reserve productivity and investor trust, which drive yield and credibility. Projects that rent liquidity receive gauge incentives funded from platform fees on their own raise
Investors Benefit from principal protection funded by strategy yield, not fees extracted from their capital. The success fee applies only on withdraw, not on redeem
Referees Earn fees proportional to the raises they bring, aligning them with raise success and longevity
Platform revenue depends on productive capital, not transaction volume or user churn.
