An overview of fees and risks associated with using leveraged vaults.
Fees
Leveraged Vaults incur fees related to building and unwinding leveraged positions. Fees apply to the total leveraged exposure, not just your initial deposit.
Entry & Exit Costs
When depositing or withdrawing, the following costs may apply:
Flashloan fee (~0.01%)
Applied on the leveraged exposure created.
Swap fee (~0.01%)
Charged per swap during looping and unwinding.
Slippage (up to ~0.15%)
Applied when swapping into or out of the base token.
Slippage is set by the user.
The same types of costs apply on withdrawal when leveraged positions are unwound.
Performance Fee
15% performance fee
Applied only on profits
Realized when you interact with the vault
Never charged on principal
Key Risks
Market Risk: Asset prices can move against leveraged positions
Leverage Risk: Gains and losses are amplified
Liquidity Risk: Instant withdrawals depend on available reserves
Smart Contract Risk: All interactions are onchain
Risk controls reduce risk but do not eliminate it.
Limits & Constraints
Supply Cap: Deposits fail if the vault cap is reached
Slippage: Applies when swapping non-base tokens
Withdrawal Liquidity: Scheduled withdrawals may be required when liquidity is low
