> For the complete documentation index, see [llms.txt](https://docs.nodo.xyz/public/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nodo.xyz/public/economic-mechanisms/fee-structure.md).

# Fee Structure

NODO vaults use a transparent, performance-based fee model that aligns the interests of users, the protocol, and strategy providers. All fees are enforced on-chain and are clearly visible in the vault’s dashboard.

### Performance Fee

* Rate: 5% of realized gains above the High Water Mark (HWM), set individually per vault.
* Trigger: Automatically charged during scheduled rebalancing events (every 1–2 days).
* High Water Mark Protection:
  * Prevents fees on unrealized or historical profits.
  * New deposits raise the baseline to ensure users only pay on actual performance above their entry value.
* Destination:
  * 100% of collected performance fees go to the NODO protocol treasury.
  * Not shared with LPs or operators unless explicitly specified in a future vault’s terms.

### Management Fee

* Current Rate: 0%
* Management fees are disabled by default to maintain capital efficiency for depositors.

### User Protections & Exit Flexibility

* No Lockups: Users may withdraw funds at any time unless an emergency shutdown is triggered.
* No Withdrawal Fees: Users are never charged fees for exiting the vault.
* Principal Protection via HWM:
  * Depositors never subsidize past gains.
  * Fees only apply to new profits earned beyond their personal entry NAV.