Fees in the app

A strategy's creator can earn two fees from it: a management fee and a performance fee. As a creator, you set both when you create the strategy, within fixed maximums. As a backer, you pay them through the strategy's share price, so higher fees leave less for you. This page also covers the other costs around a strategy, such as setup, swaps, network fees and moving USDC to and from Hyperliquid.

Key points

• Creators set two fees. The management fee is up to 2% a year, and the performance fee is up to 20% of gains above the strategy's previous high.
• Fees are paid to the creator in strategy shares, not to tango.fun. They build up every second, and the vault mints (creates) them as new shares each time the strategy settles deposits or withdrawals.
• After deployment, the app has no screen for changing fees. The only exception is stopping them when you close a strategy.

Fees the creator sets

The creator picks each rate in the builder. Higher fees leave less for backers.

The vault has other fees too: entry, exit, deposit cancellation and redemption cancellation. The contracts have ceilings for them, but the app does not charge them. See Vault fees.

How are fees charged?

• Fees build up every second, and the strategy's share price already reflects what has built up.
• Each time the strategy settles a deposit or a withdrawal, the fees built up so far become shares the creator can claim.
• Creators claim these shares from Manage, under Fees Earned, and can withdraw them like any other shares.
• The performance fee is only charged on gains above the strategy's previous high, called its high-water mark. There is one high-water mark for the whole strategy.

Can fees change after deployment?

The app does not let you change fees after deployment. The one exception is Stop fees, which lowers both fees to zero when a creator closes a strategy.

The contracts themselves allow more. The creator's wallet can lower fees at any time. It can also raise them, up to their fixed maximums, after a 3-day grace period. Nobody can ever raise the maximums. A strategy's page shows these rules in its fee details.

Platform fee

The vault's fee splitter, the contract that divides fees between their recipients, reserves a platform share of the creator's fees. The contract caps that share at 5% of fee inflows.

Other costs

A strategy has other costs besides the creator's fees. In the table, a builder fee is a fee an app adds to the orders it sends to Hyperliquid. A fill is an order, or part of one, that executes.