FAQ

Common questions and answers about fees on the platform, including how fees are calculated and when they’re charged.

Why is Canopy updating its fee structure?

Canopy is transitioning from a performance-based fee model to a fixed 1.5% annual management fee to ensure sustainable development of new yield strategies and maintain platform security and reliability at scale. This change helps us cultivate a more predictable revenue stream to support our growing ecosystem.

When does the new fee structure take effect?

The new 1.5% annual management fee structure is effective immediately across all Canopy vaults and strategies.

How will the new fees impact my current yields?

The 1.5% annual management fee is designed to have minimal impact on your net yields. For perspective, this translates to approximately 0.125% per month, which is significantly lower than the potential variation in underlying DeFi yields.kk

Fee Implementation

How exactly is the management fee calculated?

The management fee is calculated as 1.5% of assets under management annually. This translates to approximately 0.004% per day, applied continuously to your deposited assets.

Are the fees transparently visible on-chain?

Yes, all management fees are applied on-chain and fully transparent. You can verify the fee applications through Movement blockchain explorers when reviewing your vault transactions.

Strategy-Specific Questions

Do all strategies have the same fee structure?

Yes, we've standardized the fee structure across all strategies to a consistent 1.5% annual management fee with 0% performance fee, regardless of the strategy type or underlying protocols.

What happened to the performance fees that were previously charged?

We've eliminated all performance fees in favor of the simplified management fee structure. This means you'll no longer see variable fee rates based on your strategy's performance.

General Questions

How does Canopy's fee structure compare to other DeFi platforms?

Canopy's 1.5% annual management fee is competitive within the DeFi ecosystem, particularly when considering the simplicity and transparency of our fee structure compared to more complex models that may include both management and performance fees.

How will the collected fees be used?

Fees collected will fuel the development of new yield strategies, enhance platform security, and ensure reliable operation at scale. This sustainable revenue model allows us to continually improve the Canopy ecosystem and expand the opportunities available to our users.

Can I expect the fee structure to change again in the future?

While we aim for consistency, Canopy may review and adjust fee structures to ensure the long-term sustainability of the platform. Any future changes would be announced and implemented with transparency.