4.5 MoonFarm Ecosystem Fee Structure
I. Performance Fee
Most MoonFarm Vaults have a performance fee structure, which is 3% of harvested rewards/profits.
2% is distributed back to the MFO Vault and MFO stakers.
1% is allocated to MoonFarm Treasury.
These fees are already built into the APY of each vault and daily rate. The performance fee is largely distributed back to $MFO stakers and is the main source of MoonFarm platform revenue.
The MoonFarm treasury is used for further funding platform development, new optimization strategies, smart contracts security, and other initiatives. The performance fee was also implemented to promote community engagement and governance participation. A successful and engaged community is critical for our future growth, which in-turn rewards platform users even more.
II. Withdrawal fee
MoonFarm vaults also have a 0.03% withdrawal fee when a customer withdraws their assets from MoonFarm. The main purpose of this fee is to prevent possible exploits from bad-faith actors. Without the fee, somebody could deposit just before the reward harvest and withdraw immediately after that event, thus taking some % of the gains generated by legitimate stakers.
III. Swap fee
Moonswap finds the best rate among the CEXs and DEXs supported by the system. The transaction happens instantly. The user is only charged as small as 0.1% fee on any transaction on Moonswap.
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