How fees work

Two recurring fees, plus the asset manager's performance fee. All visible, all applied at the vault level.

The fees:

Platform fee, 1% per year. Accrued daily. Covers institutional custody at Ceffu and the MakeBanc infrastructure: the vaults, the NAV oracle, settlement, and reporting. It is not split with anyone; the entire 1% goes to MakeBanc.

Insurance fee, 1% per year. Accrued daily. A complete pass-through of the cost of insuring MakeBanc's technology-risk exposure (coverage from Breach, currently in progress). MakeBanc keeps none of it.

Performance fee, 30% of returns above the high water mark. Only charged when the strategy makes you money beyond its previous peak. This is the asset manager's fee.

No entry fees, no exit fees, no spread markups, no idle balance penalties.

Who gets what:

The 1% platform fee goes entirely to MakeBanc. The 1% insurance fee is passed straight through to the insurer, at cost, and MakeBanc keeps none of it. Neither is split with the asset manager.

The 30% performance fee is the asset manager's revenue. MakeBanc charges a payment processing fee on the performance fees an asset manager earns, set by their tier. That payment processing fee is taken from the asset manager's fee, never from yours. See The Tier Program.

You pay the same regardless: 1% platform + 1% insurance, plus 30% of performance above the high water mark.

Why this structure:

High water mark: the asset manager doesn't get paid twice for the same gain. If the vault drops and recovers, the performance fee only kicks in past the previous peak.

The 1% platform fee covers custody and infrastructure. The 1% insurance fee covers technology-risk insurance, at cost (coverage from Breach, currently in progress). Both accrue daily, so there's no month-end surprise.

What MakeBanc does not earn from:

No spread markups. No lending your deposits. No payment for order flow. No hidden tiers. MakeBanc earns from the 1% platform fee and from its payment processing fee on performance fees; the 1% insurance fee is a pass-through it keeps none of. You may also incur network gas fees (typically minimal on Base) and any costs inherent to the strategy's trading activity.

Worked example:

For a full numeric walkthrough, see the worked example. For detailed performance fee mechanics, see performance fee.

Gas fees:

Gas on Base is typically a few cents per transaction. You pay it when you sign. It's a Base network fee, not a MakeBanc fee. The network is cheap enough that gas is generally not a meaningful factor.