> ## Documentation Index
> Fetch the complete documentation index at: https://docs-staging.centuari.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Performance Fees

> Understanding and claiming curator performance fees

## Overview

Performance fees reward curators for generating returns above a baseline (hurdle rate). This guide explains how they work and how to claim them.

## Fee Structure

### Management Fee

Charged continuously on AUM:

```
Annual management fee: 1%

Daily accrual: 1% / 365 = 0.00274%

On $1,000,000 AUM:
  Daily: $27.40
  Monthly: ~$833
  Annual: $10,000
```

### Performance Fee

Charged on profits above hurdle:

```
Performance fee: 20%
Hurdle rate: 5%

Vault returns 12% annually on $1,000,000:
  Gross profit: $120,000
  Above hurdle: $120,000 - $50,000 = $70,000
  Performance fee: $70,000 × 20% = $14,000
```

## High-Water Mark

Performance fees only apply to new highs:

```
Quarter 1:
  Starting NAV: $1.00
  Ending NAV: $1.10
  Profit: 10%
  Performance fee charged: Yes (above hurdle)

Quarter 2:
  Starting NAV: $1.10
  Ending NAV: $1.05
  Profit: -4.5%
  Performance fee: No (NAV dropped)

Quarter 3:
  Starting NAV: $1.05
  Ending NAV: $1.12
  Profit: 6.7% from Q2, but only 1.8% from ATH
  Performance fee: Only on $1.10 → $1.12 gain
```

## Fee Calculation

### Full Example

```
Vault: $1,000,000 AUM
Management fee: 1%
Performance fee: 20% above 5% hurdle
Period: 1 year
Performance: 12%

Step 1: Management Fee
  $1,000,000 × 1% = $10,000

Step 2: Gross Performance
  Starting: $1,000,000
  Before fees: $1,120,000 (12% return)
  After management: $1,110,000

Step 3: Hurdle Calculation
  Hurdle (5%): $50,000
  Excess return: $110,000 - $50,000 = $60,000

Step 4: Performance Fee
  $60,000 × 20% = $12,000

Step 5: Total Fees
  Management: $10,000
  Performance: $12,000
  Total: $22,000

Step 6: Net to Depositors
  $1,120,000 - $22,000 = $1,098,000
  Net return: 9.8%
```

## Claiming Fees

### Management Fees

Claimable anytime:

<Steps>
  <Step title="Access Curator Dashboard">
    Go to your vault management page
  </Step>

  <Step title="View Accrued Fees">
    See management fees accrued since last claim
  </Step>

  <Step title="Claim">
    Click "Claim Management Fees"
  </Step>

  <Step title="Receive">
    Fees sent to your wallet (same asset as vault)
  </Step>
</Steps>

### Performance Fees

Claimable at high-water mark:

<Steps>
  <Step title="Check High-Water Mark">
    Verify vault NAV is at or above previous high
  </Step>

  <Step title="View Claimable Amount">
    See performance fees available
  </Step>

  <Step title="Claim">
    Click "Claim Performance Fees"
  </Step>

  <Step title="High-Water Mark Updates">
    New high-water mark set at current NAV
  </Step>
</Steps>

## Fee Timing

| Fee Type    | Accrual         | Claiming                      |
| ----------- | --------------- | ----------------------------- |
| Management  | Continuous      | Anytime                       |
| Performance | At new NAV high | When at/above high-water mark |

## Tax Considerations

<Warning>
  Curator fees are likely taxable income. Track all claims for tax reporting.
</Warning>

Export available:

* Fee claim history
* Per-period breakdown
* Tax lot information

## Best Practices

<CardGroup cols={2}>
  <Card title="Claim Regularly" icon="calendar">
    Don't let fees accumulate excessively
  </Card>

  <Card title="Track Performance" icon="chart-line">
    Know where you stand vs high-water mark
  </Card>

  <Card title="Communicate Fees" icon="comments">
    Be transparent with depositors about fee structure
  </Card>

  <Card title="Plan for Taxes" icon="receipt">
    Set aside portion for tax obligations
  </Card>
</CardGroup>

## Fee Comparison

| Your Fees | Market Range | Competitive? |
| --------- | ------------ | ------------ |
| 1% mgmt   | 0.5-2%       | Average      |
| 20% perf  | 10-20%       | High end     |
| 5% hurdle | 0-8%         | Average      |

## FAQs

<AccordionGroup>
  <Accordion title="Can I change fees?">
    Fee increases require 30-day notice and governance approval. Decreases are immediate.
  </Accordion>

  <Accordion title="What if vault loses money?">
    No performance fee until NAV exceeds previous high-water mark.
  </Accordion>

  <Accordion title="When should I claim?">
    Management fees: Monthly or quarterly. Performance fees: When available at new highs.
  </Accordion>

  <Accordion title="Are fees in vault asset or tokens?">
    Fees are paid in the vault's base asset (e.g., USDC).
  </Accordion>
</AccordionGroup>