How deposits, shares and fees work
You deposit funds and receive shares. Shares are a claim on a slice of the vault, not a fixed sum — and the management fee is charged by minting shares, never by moving your funds. · 5 min read
Shares, not balances
When you deposit, the vault mints you shares priced at the current ratio of accounted assets to total shares. Later, your shares redeem for that same proportion of whatever the vault holds. If the vault earns, every share is worth more; if it loses, every share is worth less.
The management fee dilutes, it does not withdraw
The annual fee — capped at 5.00% a year by the contract — is settled by minting shares to the treasury, prorated by elapsed time. No funds leave the vault when the fee is charged; existing holders are diluted by exactly the fee amount. That makes the fee visible in the share price rather than hidden in a transfer.
Yield is accrued, not promised
Real-world revenue reaches the vault through an explicit accrual transaction that raises accounted assets. Any APY you see on this site is either a realised figure computed from those accruals with its timestamp shown, or an explicitly illustrative projection. There is no forecast presented as fact.