Protocol fees

The protocol earns fees on total TVL, and on Jones Vaults' performance.
Currently, the fees are:
  • 2% annual fee on total TVL, applied at each epoch.
  • 20% performance fee on yield generated.
That means: If user deposits are 100 ETH for an epoch lasting 1 month, the protocol would earn 100 * (2%/12) = 0.1667 ETH in TVL fees. If the protocol generates 6% yield on the 100 ETH for the month, it would earn (100 * 6%) * 20% = 1.2 ETH in performance fees.
Note: No fees are charged until the fee sharing feature for veJONES holders is live.