Fees (Accounting)

The concepts are in Fees & High-Water Mark; this page is the accounting mechanics.

#Accrual timing

_accrueFees() runs at the top of deposit, redeem, and twice inside executeCopy (before the risk check and after the swap). Each run:

1. AUM fee: if lastFeeTs is set and time has passed, feeLiabilitiesUsdg += feeModule.aumFee(equity, elapsed). lastFeeTs updates every call.
2. Performance fee: compute navPerShare on post-AUM equity.
   • If the high-water mark is unset, set it to the current NAV/share (no fee).
   • If NAV/share exceeds it: charge 10% of (nav − hwm) × totalShares / 10^6, add to liabilities, and raise the high-water mark to the post-fee NAV/share.
3. Emit FeesAccrued(aumCharged, perfCharged, feeLiabilitiesUsdg) when either charged non-zero.

With no fee module set or no shares, accrual is a no-op beyond timestamping.

#The high-water mark's two jobs

_touchHighWater() (after deposits and copies) raises the mark whenever NAV/share exceeds it, without charging.

#Payout mechanics

_tryPayFees() runs after deposits, redeems and copies:

1. No liabilities or no fee module → return.
2. Need both protocolRecipient and a leader payee (defaults to leader) → else wait.
3. Split via FeeModule.splitFee: protocol 20%, staker 10%, leader 70% (Phase 2 parameters).
4. Fail-closed staker slice: if stakerRecipient is unset, only protocol + leader are paid; the staker slice remains in feeLiabilitiesUsdg. It is never given to anyone else.
5. Payout requires cashUsdg ≥ payout; otherwise liabilities wait for cash.
6. Staker payment: the vault forceApproves the pool, calls StakingPool.notifyReward, zeroes the approval. Emits FeesPaid.

#Effect on depositors

• Fees reduce equity, hence NAV per share, hence both deposit share-minting and redemption values — always after accrual, so no transaction front-runs its own fee.
• Because totalAssetsUsdg() nets out pending fee estimates, displayed NAV already reflects fees that have accrued but not yet been booked.

#Numbers

Example numbers — not a live desk or forecast. 20,000 shares, HWM 1.00, NAV/share reaches 1.10:

The AUM fee (2%/yr, ≈ 0.38 USDG per 10,000 USDG per day) accrues independently by time.