Performance Fee

tHLP charges a 10% performance fee on realised gains across the entire vault, applied periodically via dilutive share minting.

The fee is taken only on profits — never on principal. It is distributed by minting new tHLP shares to the fee recipient, slightly diluting all holders.

How the 10% Fee Works

Every bucket keeps track of its last equity snapshot. When the manager calls the claim function, the contract calculates the positive delta for each bucket, sums them, and mints 10% of that value as new tHLP to the fee collector.

Triggered by `claimPerfFee(maxBuckets)` — typically once per epoch.
Using well tested Watermark mechanism from Yearn.
Fee is proportional to realised profit since each bucket’s last snapshot.
No fee if bucket equity decreased or stayed flat (high‑water mark).
Minted shares dilute holders uniformly rather than subtracting USDC.
Maximum fee rate capped at 10 % (1,000 bps).

Fee Notice

At the time of launch we have no management, deposit, or withdrawal fees. All HYPE incentives auto-compound.

The protocol performance fee is on net HLP profits. Fees mint new tHLP routed to the Nucleus treasury.