Fees and the yield waterfall

Trade Dollar charges one fee: a performance fee on realized yield. There is no fee on assets under management. If the vault earns nothing, no fee is taken.

• Performance fee. A share of the yield the vault actually realizes, charged when trades settle. The expected range is 10% to 20% of realized yield; the actual rate is set at launch and shown in each vault. The fee is shared between Trade Dollar, for running the platform, and the Curator, for running the book.

The yield waterfall. Gross yield from trade finance passes through one step before it reaches you:

1. Gross yield, the blended return from trade finance deals.
2. Less the performance fee, shared between Trade Dollar and the Curator.
3. Net yield to LPs, the return you actually receive.

Deal-level costs, including what the originator earns on each trade, are part of each deal's economics and are already reflected in the gross yield. They are not a separate charge to LPs.

Why one fee. The incentive story is deliberately simple: the platform and the Curator earn only when the vault generates yield for LPs.

Where the fee goes. The performance fee funds the platform and the Curator: the team, operating costs (infrastructure, legal, compliance, audits, insurance), an insurance reserve held for LP protection (see Insurance architecture for how it works), and continued development.

The rate is set at launch and shown in the app and on this page.