Fee Structure

Tumbuh use a transparent, performance-based fee model that aligns the interests of users, the protocol, and strategy providers. All fees are enforced on-chain and are clearly visible in the vault’s dashboard.

Performance Fee

• Rate: 20% of realized gains above the High Water Mark (HWM), set individually per vault.

• Trigger: Automatically charged during scheduled rebalancing events (every 1–2 days).

• High Water Mark Protection:

  • Prevents fees on unrealized or historical profits.

  • New deposits raise the baseline to ensure users only pay on actual performance above their entry value.

• Destination:

  • 100% of collected performance fees go to the Tumbuh protocol treasury.

  • Not shared with LPs or operators unless explicitly stated in future vault terms.

Management Fee

• Current Rate: 0%

• Status: Disabled by default to maximize capital efficiency for depositors.

User Protections & Exit Flexibility

• No Lockups: Funds can be withdrawn at any time (unless an emergency shutdown is triggered).

• No Withdrawal Fees: Users are never charged fees for exiting the vault.

• Principal Protection via HWM:

  • Depositors never subsidize past gains.

  • Fees only apply to new profits earned beyond their personal entry NAV.

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Disclaimer

The fee model implemented by Tumbuh does not create any financial liabilities for the protocol in adverse market conditions.

• No Guaranteed Returns: Tumbuh does not promise fixed returns or capital protection. All yields depend on underlying market performance and protocol strategies.

• Performance-Based Only: Fees are only collected on realized profits above the High Water Mark (HWM). In the absence of profits, no fees are charged, and the treasury bears no financial obligation.

• No Hidden Liabilities: With management fees set at 0% and no withdrawal fees, the protocol does not carry operational or exit-related liabilities toward depositors.

• User Responsibility: Depositors acknowledge that all investments in DeFi carry inherent risks, including smart contract vulnerabilities, third-party protocol risks, and market volatility.

• Protocol Treasury Protection: In the event of losses, exploits, or adverse market movements, the protocol treasury is not obligated to compensate depositors unless explicitly stated in future terms.