Fees
Every vault charges zero management fee. The protocol earns only a performance fee, and only on realized gains above a hurdle and a high-water mark.
Rates are set per vault onchain. They change only through governance, today a 2-of-3 Safe behind a 7-day timelock that owns every vault.
Vault fees
| Vault | Management Fee | Performance Fee | Soft Hurdle | High Water Mark |
|---|---|---|---|---|
| Conservative | 0% | 10% | 4% | Yes |
| Moderate | 0% | 10% | 6% | Yes |
| Aggressive | 0% | 15% | 8% | Yes |
| Hedged | 0% | 12% | 4% | Yes |
| Inverse | 0% | 15% | 8% | Yes |
| Configurable | 0% | 10% | 6% | Yes |
| Prediction Markets(planned, not yet deployed) | 0% | 25% | 15% | Yes |
- Management fee: none. No fee is charged on assets under management on any vault.
- Performance fee: charged only on realized gains, and only from the vault's trading bucket. It is never taken from the principal-protected floor.
- Soft hurdle: the minimum return before a performance fee applies. Each vault has its own (4%–15%), so depositors keep all returns up to the hurdle.
- High-water mark (HWM): the fee applies only to new profit above the vault's previous peak NAV-per-share. If value declines, no fee is charged until the vault recovers past that peak.
Source of truth: each vault's onchain fee settings on Base Sepolia. Read performanceFeeBps() and hurdleRateBps() on any vault. Vaults are ERC-7540 async and denominated in tUSDC.
Performance fees go to the protocol treasury wallet. Every vault's feeCollector() returns that wallet.
Example (Moderate Vault: 0% management, 10% performance, 6% hurdle):
User deposits: 10,000 tUSDC
Vault generates: 15% return (1,500 tUSDC gain)
Management fee: 0 tUSDC
Hurdle (6%): 600 tUSDC
Gain above hurdle: 900 tUSDC
Performance fee: 90 tUSDC (10% of the gain above hurdle, from the trading bucket)
Net profit: 1,410 tUSDC (14.10% net return)
Other fees
| Fee | Rate | Note |
|---|---|---|
| Deposit | 0% | No deposit fees |
| Standard withdrawal | 0% | |
| Utility NFT (node registration) | Free | Minted onchain by the protocol, no mint fee |
| Node third-party services | 5-10% of service revenue | 70% to Node Operator, 30% to Protocol Treasury |
| Governance proposal submission | 1,000 NODR | Refundable if the proposal passes |
| Vote delegation | 0% | Free delegation |
- The third-party services fee applies when a node provides services to external protocols. Its 70 / 30 split covers only those fees. It is distinct from the protocol revenue split below.
- Paid node sale packages (Oracle $8,000 / Guardian $5,000 / Validator $2,750, Micro free) are sale package prices, not an NFT mint cost. See Node sale.
Where fees go
Planned revenue distribution: 40% to Node Operators, 35% to Treasury Reserve, 15% to Token Buybacks, 10% to Development. The node operator share is split 30/30/30/10 (Oracle / Guardian / Validator / Micro). See Rewards.
All fees are collected onchain and are publicly verifiable.
Discounts and waivers (planned)
None of these exist in the fee contracts today.
- Utility NFT holders: 10% discount on all fees, increased with NFT tier or rarity.
- High value users: volume discounts for large deposits, reduced fees for long term stakers, VIP tiers for institutional users.
- Promotional periods: launch promotions with reduced or zero fees, seasonal campaigns, referral bonuses.
How Noderr compares
| Protocol | Performance Fee | Management Fee | Hurdle Rate |
|---|---|---|---|
| Noderr (Conservative) | 10% | 0% | 4% |
| Noderr (Moderate) | 10% | 0% | 6% |
| Noderr (Aggressive) | 15% | 0% | 8% |
| Yearn Finance | 20% | 2% | No |
| Convex Finance | 17% | 0% | No |
| Beefy Finance | 4.5% | 0% | No |
Changing fees
Today fee changes go through the 2-of-3 Safe and the 7-day timelock. Once DAO governance is active, the planned process is:
- A proposal with the new fee structure.
- Community discussion (7 days).
- A governance vote across the Oracle and Guardian chambers.
- A timelock period.
- Automatic implementation.
Thresholds, voting weights and timelock lengths are on Governance.
Fees may be adjusted based on:
- Market conditions: lower fees during bear markets
- Competition: match or beat competitor rates
- Protocol performance: higher fees if outperforming
- Treasury health: adjust based on reserve levels
Planned
- Fee buyback and burn. 15% of protocol revenue is allocated to NODR buybacks. No buyback or burn is live onchain yet. The share of bought back NODR that will be burned is not a fixed percentage. It will be set at protocol or DAO discretion within a range defined by governance, based on market and treasury conditions, by Noderr's adaptive (ML-governed) system together with node operator input.
- Revenue sharing. Direct revenue share to stakers.
- Dynamic pricing. AI optimized fee rates.
- Crosschain fees. Unified fee structure across chains.