---
title: "Fees"
description: "Overlayer applies a performance fee to yield generated by the backing, not to principal: 25% under the standard model, 50% to the Foundation during VISION."
keywords:
  - "fees"
  - "performance fee"
  - "VISION"
  - "Foundation"
  - "gas fee"
  - "yield"
canonical_url: https://docs.overlayer.fi/protocol/fees
md_url: https://docs.overlayer.fi/protocol/fees.md
last_updated: 2026-11-01T13:15:32.000Z
---

# Fees

> Overlayer applies a performance fee to yield generated by the backing, not to principal: 25% under the standard model, 50% to the Foundation during VISION.

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.

:::info
**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% |

:::note
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](https://docs.overlayer.fi/farming_season/season_overview.md).

## 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](https://docs.overlayer.fi/protocol/overyield.md).

## 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.

For instructions, see [Swap](https://docs.overlayer.fi/use_the_app/swap.md) and [Bridge](https://docs.overlayer.fi/use_the_app/bridge.md).