Fees must be evaluated based on structure, not just numbers
Haedal Lending Vault charges a 0% management fee and a 10% performance fee. In other words, it’s not a model where fixed overhead is incurred simply for depositing funds; costs are charged only when the strategy generates actual returns.
However, you should not conclude something is cheap or expensive based solely on the 10% figure. Investors must compare the net profit—after deducting fees—to the net return they would receive if they directly lent based on the bolt equity price appreciation. This also needs to account for market movement, compensation claims, the time required for reinvestment, and transaction costs.
The key evaluation metric is net profit, not the displayed APY. By checking the historical equity price, the actual distribution changes, TVL, and on-chain activity together, it becomes easier to determine whether the curator’s operations justify the costs.
The existence of a performance fee does not guarantee returns. This module is BETA, and position size should be matched to the level of risk.
#Haedal @HaedalProtocol
Haedal Lending Vault charges a 0% management fee and a 10% performance fee. In other words, it’s not a model where fixed overhead is incurred simply for depositing funds; costs are charged only when the strategy generates actual returns.
However, you should not conclude something is cheap or expensive based solely on the 10% figure. Investors must compare the net profit—after deducting fees—to the net return they would receive if they directly lent based on the bolt equity price appreciation. This also needs to account for market movement, compensation claims, the time required for reinvestment, and transaction costs.
The key evaluation metric is net profit, not the displayed APY. By checking the historical equity price, the actual distribution changes, TVL, and on-chain activity together, it becomes easier to determine whether the curator’s operations justify the costs.
The existence of a performance fee does not guarantee returns. This module is BETA, and position size should be matched to the level of risk.
#Haedal @HaedalProtocol
