Worked example
Three numeric examples of the 30% performance fee, including a partial withdrawal and a loss, computed with the vault's exact formula.
All three cases use the vault's exact formula, in whole USDC for readability. s is the share
being withdrawn. Settlement NAV means the on-chain figure: idle balances plus open ranges at the
TWAP price. The hedge leg on Hyperliquid contributes to that figure only as USDC actually returned
to the vault, so in each case the hedge has already been closed and its margin is back.
gross = NAV * s
fee = (NAV - basis) * s * 30% if NAV > basis, else 0
net = gross - fee
remaining basis = basis * (1 - s)Case A: full withdrawal at a profit
You deposited 10,000 USDC. The position settles at 11,000 USDC. You withdraw everything.
| USDC | |
|---|---|
| Basis | 10,000 |
| Settlement NAV | 11,000 |
| Profit | 1,000 |
| Share withdrawn | 100% |
| Gross | 11,000 |
| Fee (30% of 1,000) | 300 |
| Net to you | 10,700 |
You get your 10,000 back in full plus 700 of the 1,000 profit. The position NFT is burned.
Case B: half withdrawal, then what remains
You deposited 10,000 USDC. The position settles at 12,000 USDC. You withdraw 50%.
| USDC | |
|---|---|
| Basis | 10,000 |
| Settlement NAV | 12,000 |
| Profit | 2,000 |
| Share withdrawn | 50% |
| Gross | 6,000 |
| Fee (30% of half the profit, 1,000) | 300 |
| Net to you | 5,700 |
| Remaining basis | 5,000 |
| Remaining Settlement NAV | 6,000 |
The fee was charged on the half of the profit you realized. The other 1,000 of profit stays in the position, unrealized and uncharged. Because the basis was reduced to 5,000 in the same step, the position still shows 1,000 of profit over basis. A later full exit at 6,000 would charge 30% of that 1,000, which is 300, and never charge again for the profit already paid on.
If instead the position fell to 5,000 after the partial exit, a full withdrawal would pay no fee: NAV equals basis, so profit is zero.
Case C: withdrawal at a loss
You deposited 10,000 USDC. The position settles at 9,500 USDC. You withdraw everything.
| USDC | |
|---|---|
| Basis | 10,000 |
| Settlement NAV | 9,500 |
| Profit | none (NAV below basis) |
| Fee | 0 |
| Net to you | 9,500 |
There is no fee on a loss, and no fee on capital. Tuo earns nothing from this position.
Two things the examples assume
- The hedge is closed and its margin is back. While margin is outstanding on Hyperliquid the vault cannot settle the position, and the app shows why. See Withdrawals.
- Venue costs are already inside NAV. Uniswap fees earned, swap slippage paid, Hyperliquid trading fees and funding, and bridge fees all landed in the position's balances before settlement. They are not itemised again at withdrawal. See Venue and bridge costs.
An emergency exit computes the same 30% on the on-chain leg only and withholds it in the tokens the position holds rather than in USDC. See Performance fee.