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Atlas implements a transparent fee model. When vaults generate protocol revenue, it accrues to the treasury and can be used to fund protocol development, operations, and security.

Fee Structure

Vault Performance Fees

When trading vaults generate profits, a performance fee may be charged. How fees are allocated is governed by protocol parameters and may change over time.

Fee Flow

Vault Profits


Performance Fees (vault-defined)


Protocol Treasury

Revenue Distribution

Weekly Distribution Cycle

  1. Fees Accumulate: Vault performance fees are collected in the treasury
  2. Conversion: Vault tokens are redeemed to USDC via EasySwapper
  3. Allocation: Funds can be allocated according to governance decisions

Real Yield vs Inflationary Rewards

Atlas Approach

  • ✅ Fees accrue in USDC from actual protocol revenue
  • ✅ No token inflation or dilution required for fee collection

Typical DeFi Approach

  • ❌ Rewards paid in newly minted governance tokens
  • ❌ Token inflation dilutes all holders
  • ❌ “APY” is circular token printing
  • ❌ Rewards decrease in value over time

Treasury Management

Treasury Uses

The treasury funds:
  • Protocol development and maintenance
  • Security audits and bug bounties
  • Community initiatives
  • Operational expenses
  • Emergency reserves

Transparency

All treasury transactions are on-chain and verifiable:

Notes

Atlas does not currently have an on-chain staking contract. If/when revenue sharing to token holders is introduced, this documentation will be updated.

FAQ

Q: Can the fee percentages change? A: Fee parameters are controlled by governance and can be adjusted through proposals. Q: What happens if vaults don’t generate profits? A: No performance fees are charged on losses, so no protocol revenue is generated during unprofitable periods.