# Fee Structure & Economics

#### Transparent Fee Model

**Performance Fee: 7.5%** (vs. Liminal's 10%)

* Applied only to net positive returns
* Calculated monthly to avoid high-frequency fee extraction
* No fees during negative performance periods

**No Management Fees**

* No annual management charges
* No deposit/withdrawal fees
* No gas fee markups

#### Fee Comparison

| Platform     | Performance Fee | Management Fee | Typical APY |
| ------------ | --------------- | -------------- | ----------- |
| Liquid Agent | 7.5%            | 0%             | 25-30%      |
| Liminal      | 10%             | 0%             | 11-17%      |
| Aave         | 0%              | 0%             | 2.99%       |
| Ethena       | 0%              | 0%             | 4.42%       |
| Lulo         | 0%              | 0%             | 3.85%       |

#### Revenue Sharing Model

25% of protocol fees are allocated to:

* **50%**: Development and maintenance
* **30%**: Security audits and insurance
* **20%**: Community incentives and governance