0.1% Withdrawal Fee

Most single strategy vaults incorporate a 0.1% withdrawal fee that is redistributed to vault users.

Without this fee, it is theoretically possible for an individual to deposit a large quantity of underlying assets, call a vault harvest, and exit the vault with a large share of the vault's rewards. One iteration may not be highly profitable, but consistent, automated attacks can compound, and take yield from well-intentioned users.

Incorporating the fee deters such behaviour, because entering and exiting a crypt with large capital for the purpose of harvesting would result in a net loss.

The community requested that an alternative solution be developed, so that they would not also have to face a fee when exiting vaults.

Therefore, new vaults utilise a gated harvest function that is automated by keepers. These new vaults no longer utilise a withdrawal fee, but anonymous users can no longer earn harvest-caller rewards and fee distributions.

The Reaper UI has recently been upgraded to display fees. You can hover over the "!" icon on each vault to see deposit, withdrawal, and harvest fees.

Fees displayed in the vault UI