Economics
One fee model
Section titled “One fee model”fact A vault charges two fees set by its mandate: a management fee per year on total assets and a performance fee on harvested coupons. Both accrue as vault shares held by the vault itself, so the share price everyone sees is already net of fees. collectFees() converts the accrued shares to USDG from idle quote and splits the amount in one transaction:
| Recipient | Share | Set by |
|---|---|---|
Note treasury (NoteCore.feeSink()) | protocolShareBps, fixed per vault at creation, at most 50 percent | The factory that created the vault (default 20 percent) |
| Partners | Each partner’s shareBps of the fee earned on the shares its depositors hold | The mandate, per partner id (at most 50 percent) |
| Fee recipient | The remainder | The mandate |
The partner amount is fee × (partner's tagged shares ÷ total supply) × shareBps. It is paid to the partner’s payee on chain, on every collection. No invoices, no off-chain reconciliation.
Attribution
Section titled “Attribution”Deposits made through deposit(assets, receiver, partnerId) tag the receiver on their first deposit. The tag follows the shares: transfers move the attributed balance from one tagged holder to another; queued shares are attributed to nobody while they wait. A partner id is registered on the mandate through its timelocked path and can be read back with mandate.partner(id) and mandate.partnerIds().
Worked example
Section titled “Worked example”illustrative A wallet brings 2,000,000 USDG into a vault with a 0.5 percent management fee and a 10 percent performance fee, a 20 percent protocol share and a 50 percent partner share. Total supply is 10,000,000 USDG at par, and the vault harvests 0.5 percent of assets in coupons per week.
| Line | Per year |
|---|---|
| Management fee on the whole vault | 50,000 USDG |
| Performance fee on the whole vault (10 percent of 2,600,000 in coupons) | 260,000 USDG |
| Fees collected | 310,000 USDG |
| To the Note treasury (20 percent) | 62,000 USDG |
| To the wallet (20 percent of shares × 50 percent) | 31,000 USDG |
| To the fee recipient | 217,000 USDG |
Coupons and their timing are properties of the series the vault holds, not of the vault; the example is arithmetic, not a forecast.
Notes and Credit
Section titled “Notes and Credit”Distribution and credit integrations do not carry a partner id. What they earn is a product decision on your side; what they pay the protocol is the series fee schedule (couponFeeBps on coupons and notionalFeeBps on matched notional, both in getSeries), which routes to the same fee sink. Every subscription your surface brings therefore grows the treasury by the same schedule as a subscription made on the app.
How this grows the treasury
Section titled “How this grows the treasury”- Vault fees pay a fixed protocol share into the fee sink on every collection.
- Every allocation a vault makes is a COUPON subscription on
NoteCore, so vault deposits pay the series fee schedule as well. - Deeper COUPON demand lets the desk fill SHIELD at tighter coupons, which draws more stock into series, which produces more coupons to harvest.
Fee sink mechanics are described under Protocol: Fees and Token: Treasury floor.