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Fees

HALO's fee structure is designed to align incentives, reward token holders, and ensure sustainable protocol operations.

Fee Structure

The protocol charges a 20% performance fee on gross profits from spread capture. This fee is allocated as follows:

  • 50% → Staking rewards for $HALO stakers
  • 25% → $HALO buyback and burn
  • 25% → Protocol treasury (development, marketing, reserves)
Performance Fee20%

On gross profits from spread capture

Deposit Fee0%

No fee on deposits

Withdrawal Fee0%

No fee on principal withdrawal

Understanding the Fees

Performance Fee (20%)

The performance fee is charged only on gross profits from spread capture, not on your principal deposit. This means:

  • Your initial deposit is never subject to performance fees
  • Fees are only taken from profits generated by the AI bot
  • If the vault doesn't generate profits, no performance fee is charged
  • The remaining 80% of profits automatically compound in the vault

The 20% performance fee is competitive with traditional hedge funds and reflects the value of our AI-powered trading system. The fee allocation ensures token holders are rewarded while supporting protocol sustainability.

Performance Fee Allocation

The 20% performance fee is distributed as follows:

  1. 50% to Staking Rewards: Distributed to users who stake $HALO tokens, incentivizing long-term holding and protocol participation.

  2. 25% to Buyback & Burn: Used to buy back $HALO tokens from the market and burn them, creating deflationary pressure and increasing token value.

  3. 25% to Protocol Treasury: Allocated for development, marketing, and reserves to ensure long-term protocol sustainability.

Deposit Fee (0%)

There is no fee when you deposit USDT into the vault. You can deposit any amount without incurring charges.

Withdrawal Fee (0%)

There is no fee when you withdraw your principal deposit or redeem your vHALO shares. However, withdrawals require a 1-day lock period to allow the AI bot to unwind active trading positions on Opinion and Polymarket before returning funds to the vault.

Withdrawal Process:

  1. Request withdrawal (initiates 1-day lock)
  2. Wait 24 hours while bot unwinds positions
  3. Execute withdrawal after lock period expires

Fee Transparency

All fees are clearly displayed before you confirm any transaction. No hidden fees or surprises.

Fee Examples

Example 1: Trading Profit

If the vault generates $1,000 in gross trading profits:

  • Performance Fee: $200 (20% of $1,000)
    • $100 to staking rewards (50%)
    • $50 to buyback & burn (25%)
    • $50 to protocol treasury (25%)
  • Your Share: $800 (80% of profits) compounds in the vault

Example 2: Compound Growth

If you have 1,000 vHALO shares and the vault generates $10,000 in profits:

  • Performance Fee: $2,000 (20%)
  • Compounded Value: $8,000 (80%) increases vault value
  • Your vHALO shares become more valuable as vault value increases

Fee Updates

Fee structures may be updated through governance. Any changes will be:

  • Announced in advance
  • Subject to community voting
  • Clearly communicated to all users

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