Fees
Overlayer applies a performance fee to the yield generated by the underlying backing. The remaining yield is allocated to holders of the corresponding Staked Overlaid Asset.
The performance fee applies to generated yield, not to your deposited principal. Capital supporting outstanding Overlaid Assets is separate from the value distributed through the yield mechanism.
Performance fee
The standard performance fee is 25%. During VISION, a temporary 50% performance fee applies instead.
| Fee model | Performance fee on generated yield | Yield allocated to stakers |
|---|---|---|
| Standard | 25% | 75% |
| During VISION | 50% | 50% |
The VISION rate replaces the standard rate; the two are not added together. Campaign-specific conditions are distinct from the standard economic model.
During VISION, the entire performance fee is allocated to the Foundation. The remaining 50% of generated yield is allocated to stakers.
For the season's participation and reward mechanisms, see Season Overview.
How the fee is calculated
The fee is calculated before the remaining yield is allocated to the staking position:
Performance fee = generated yield × applicable fee rate
Yield allocated to stakers = generated yield − performance fee
For example, assume an asset family's backing generates 100 USDC of yield during a given period.
Under the standard model, 25 USDC is retained as the performance fee and 75 USDC remains for the staking allocation. During VISION, 50 USDC goes to the Foundation and 50 USDC remains for stakers.
These percentages apply to the 100 USDC generated, not to the capital that produced it. The resulting staking allocation is shared across the participating capital of that asset family.
How the fee affects your position
The yield allocated after the performance fee increases the amount of base Overlaid Assets represented by your staking shares. Your share conversion ratio therefore reflects the yield allocated to stakers after that fee.
The fee rate alone does not determine your staking return. The underlying lending rate and the proportion of the asset family participating in staking also matter. This is why a 25% performance fee does not simply mean that your staking rate will always equal 75% of the underlying lending rate.
For the calculation and worked examples, see Yield & Overyield.
Transaction costs
The performance fee is separate from the costs of executing an operation. Review the Gas Fee displayed in the dApp and the transaction details presented by your wallet before confirming.
For swaps or cross-chain operations, also review any additional costs shown by the relevant flow. These are not the performance fee applied to the backing's yield.