💵Performance Fees
A breakdown of Magik Farm's fees vs competitors.
What Makes Magik Farm Different?
At its inception, Magik Farm was created to serve the specific needs on elastic supply DeFi protocols. We wanted to offer a better value proposition to growing protocols and their investors, and designed the first ever auto-burning deflationary vaults.
Since then however, it’s expanded to serve supply capped protocol tokens, as well as eco and gas tokens. In the case of supply capped protocol ‘clients,’ we opted to offer a revenue split on performance fees in lieu of buy back burn mechanics.
Even after a generous revenue allocation in buy back burns vaults, Magik Farm’s fee structure offers competitive rates to LP providers with other products on the market offering similar services.
What are Performance Fees?
Performance fees occur each time a harvest is called on a vault strategy. This means that the reward token (i.e. the token that's being emitted to incentivize LP) gets sold, used to purchase more LP, and compound it into the LP holdings of users deposited in that strategy vault.
Each time a harvest is called, Magik Farm takes a "performance fee" - or a cut of the yield to subsidize development, deployment and gas costs, as well as ecosystem incentives.
There are no deposit or withdrawal fees on Magik Farm vaults except where explicitly stated. The only fee that MAGIK FARM takes is on yield - not on initial.
Fee Breakdown (Current)
5.5%
1.5%
0.5%
1.5%
2%
Fee Breakdown (Q4 2023 Goal)
5.5%
1%
0.5%
0%
4%
Fee Comparison (Current)
Performance Fee
5.5%
9.5%
4-8%
Sold To Market
50% (or 2.75%)
100% (or 9.5%)
100% (or 4-8%)
BBB/Revsshare Allocation
2%
Undisclosed
Undisclosed
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