> For the complete documentation index, see [llms.txt](https://docs.buoy.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.buoy.finance/for-depositors/fees.md).

# Fees

Buoy's fee model is deliberately simple: **the only fee on your capital is the Leader's performance fee, and it's only charged on new profits.**

## Overview

| Fee                                      | Amount                                         | When                                                                                                                                   |
| ---------------------------------------- | ---------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- |
| **Performance fee**                      | Set per vault (0–50%, shown on the vault page) | Only on gains above the vault's all-time-high share price. Split between the Leader and the protocol (see below) — not an extra charge |
| **Request fee**                          | Fixed, in HYPE (currently 0.01 HYPE)           | With each deposit or withdrawal request; not refunded on cancel                                                                        |
| **Gas**                                  | Standard HyperEVM network fees, paid in HYPE   | Every transaction                                                                                                                      |
| Management fee                           | **None**                                       | —                                                                                                                                      |
| Percentage fee on deposits / withdrawals | **None**                                       | Your capital enters and exits at full share-price value; the flat request fee above is the only per-transaction charge                 |

## The performance fee and the high-water mark

Each vault's Leader sets a performance fee at creation (capped at 50%; typically around 10%). It works on a **high-water mark (HWM)**: the fee applies only to profit that pushes the share price above its previous all-time high.

A worked example, with a 10% performance fee and a share price starting at **1.00 USDC**:

1. The Leader trades well and the share price would reach **1.20** — that's 0.20 of new profit per share. The Leader earns 10% of it, so depositors see the price rise to **1.18**, and the HWM is now 1.18.
2. The vault then has a bad month and the price falls to **1.05**. No fee, of course.
3. The vault recovers to **1.15**. Still **no fee** — the price is below the 1.18 high-water mark. The Leader earns nothing for regaining lost ground.
4. Only when the price pushes past **1.18** does the fee apply again, and only to the part above 1.18.

Mechanically, the fee is paid by minting new Buoys at the moment a new high is set — meaning Leaders hold the same shares you do, and their payoff is tied to the vault's continued performance.

### Where the performance fee goes

The performance fee is split between the Leader and the **referral fee**: a fixed slice (currently **10% of the fee**, set at vault creation and shown on the vault) becomes the referral fee, the rest goes to the Leader. This is a split *inside* the fee, not an extra charge — a 10% performance fee costs you exactly 10% of new profits either way. The referral fee is what funds the [Referral Program](/referral-program/referral-program.md): if you joined Buoy through someone's link, part of it comes back to you in USDC.

{% hint style="info" %}
**All performance numbers you see are net of fees.** The APR, the chart, and the share price already reflect performance fees — what you see is what depositors actually got.
{% endhint %}

## Trading costs (not a Buoy fee, but they hit your returns)

The vault trades on Hyperliquid, so it pays Hyperliquid's exchange fees like any account. If the Leader routes orders through a **builder** — a third-party trading terminal or a HIP-3 market operator — that builder may also charge a fee on the vault's trades. Buoy caps what a Leader can authorize: only protocol-whitelisted builders can be approved, at a rate the vault's contract limits (0.1% by default). These costs land inside the vault's PnL, which means they're already reflected in the share price and every performance number you see.

## The request fee

Each deposit or withdrawal request carries a small fixed fee in HYPE (currently **0.01 HYPE**), paid alongside the transaction. It covers the cost of the settlement infrastructure that prices and fulfills your request. Note that it is charged on submission and **not refunded if you later cancel** the request.


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