Fee Structure Of Smart Vaults
Cafeswap Smart vault charges 2.5% fees as of now on the profits earned by users and these fees are changeable for upcoming smart vaults but the fees will always remain less from other auto compounding vaults.
This is detailed documentation for the distribution of fees.
- BREW Burn Fees during each harvest().
- A small fee of 1.5% - 2.5% is charged on the profits made by the users to buy back and burn BREW tokens which is the main farming token of the platform.
- Currently, the BREW Burn fee varies, depending on the vault being used, and is detailed in each vault section.
- Call fee of 0.5% during each harvest()
- This fee is used to cover the cost of each harvest() call.
- It is a shared cost across all vault users and significantly cheaper than performing transactions individually e.g(A user clicks the harvest() function in the strategy he is reimbursed with a fee of 0.5% to cover the gas fees of the harvester)
- Strategist fee of 0.5% during each harvest().
- This fee is to provide incentives to the strategy developers.
- Any developer who is capable to make strategies for auto compounding is promoted by awarding 0.5% fees on every harvest() to keep them boosted.
- Vaults have a 0.1% withdrawal fee.
- The main purpose of this fee is to prevent possible exploits from bad-faith actors. Without the fee, somebody could deposit just before the harvest() function execution and withdraw straight after that event, taking a % of the gains generated by legitimate stakers.