Fees

The RoboNet protocol incorporates various fees to ensure fair compensation for performance, management, and platform usage. Here’s a detailed breakdown of the different types of fees involved:

Performance Fee:

The performance fee is charged on the profits generated by the strategy. This fee incentivizes the strategy's management to maximize returns. When a profit is reported, a percentage of the profit is taken as a performance fee and minted as new agent tokens. These tokens are then allocated to the performance fee recipient. The performance fee is set in basis points (where 10,000 basis points equal 100%), with a typical range being 5-50%.

Protocol Fee:

In addition to the performance fee, a protocol fee may be charged. This fee is a percentage of the performance fee, set by the protocol's factory. It is designed to support the ongoing development and maintenance of the RoboNet platform. The protocol fee is deducted from the total performance fee before the remainder is allocated to the performance fee recipient.

Profit Locking and Unlocking:

When profits are generated, a portion is locked as agent tokens to be gradually unlocked over time. This mechanism helps maintain a stable share value and aligns the interests of all participants. While not a direct fee, this process ensures that short-term fluctuations do not disproportionately affect long-term investors.

Each of these fees plays a crucial role in the sustainable operation of the RoboNet protocol, ensuring that contributors are fairly compensated and the platform remains robust and secure. By transparently outlining and implementing these fees, the protocol maintains trust and aligns the incentives of all participants.