Fee Mechanism

There are two types of fees that strategists can charge -

1. Performance Fee The Performance Fee is only applied to trading fees collected by Empower AI’s DEX partners, not to the nominal fee. This can vary from 0% upto 10%. The fees for each vault are visible on the UI

   For example, if UniSwap were to collect 1,000 of Token A and 500 of Token as fees, the performance fee would be 25 of Token A (1,000 * 2.5%) and 12.5 of Token B (500 * 2.5%). This assumes the default 2.5% fee but could change depending on the strategist's preference.

2. Management Fee The Management Fee is applied to the notional value of the equity tokens being burned. Equity tokens are burnt in situations such as when a user wishes to exit their investment. The default fee is 0%, but it can be increased to a maximum of 1%.

   For example, assuming a fee of 0.1%, a user that burns 1,000 of Token A and 500 of Token A would have a Management Fee equal to 10 of Token A (1,000 * 0.1%) and 5 of Token B (1,000 * 0.1%).