Worked examples

All examples use an illustrative 10% performance fee for round numbers. Your vault’s actual rate is fixed at deployment and shown in the app; the mechanics are identical.

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1 · Simple profit

Deposit $10,000**. The vault grows to **$13,000. You exit everything.

• Principal returned fee-free: $10,000
• Realised profit: $3,000 → fee$300
• You receive $12,700.

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2 · Exit at a loss

Deposit $10,000**. The vault falls to **$8,000. You exit everything.

• You are below your high-water mark. Profit: $0 → **fee$0.**
• You receive $8,000. No fee ever applies to a loss.

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3 · Partial withdrawal below the mark

Deposit $10,000**. The vault grows to **$13,000. You withdraw $6,000.

• Cumulative withdrawn ($6,000) ≤ contributed ($10,000): still under the mark → fee $0.
• Your remaining fee headroom is $4,000 — you can take that much more before any fee starts.

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4 · Crossing the mark

Continuing from example 3, you later withdraw another **$7,000** (cumulative withdrawn:$13,000).

• The first $4,000 exhausts your remaining headroom → fee-free.
• The last $3,000 is new profit → fee$300.
• Your taxed total is now $3,000, so the mark rises to$13,000 — that profit can never be charged again.

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5 · Withdraw, redeposit, withdraw — no double charge

Deposit $100**, vault grows, you withdraw **$150 (fee charged on $50). You redeposit **$100** and later withdraw $100.

• Contributed: $200 · withdrawn before this exit:$150 · already-taxed: $50 → mark =$250.
• Cumulative withdrawn after this exit: $250 — exactly at the mark → **fee$0.**
• The $50 of profit was taxed once and only once, exactly as designed.

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6 · Stale feed at exit

You exit with real profit, but a price feed your vault relies on has gone stale.

• The vault refuses to compute a fee from a stale price: fee waived, $0 charged, and the waiver is logged as an explicit event in your statement.