Fees

Strategy Performance

SherpaEarn uses a 1.5 and 15 fee structure, this is a reduced version of the traditional "2 and 20" model commonly empoyed for hedge funds and managed strategies.

This consists of two components:

1. Management Fee: 1.5% annualized on total assets under management (AUM), accrued daily.

2. Performance Fee: 15% of yield earned by the strategy on each cycle.

Both fees are deducted from earned yield only — your principal USDC deposit is never touched. The APY displayed on the main SherpaEarn page reflects the net rate after all fees have been applied.

Example of Fee Calculation & Deduction:

Assume 1,000,000.00 USDC in TVL. On cycle (day) 150, the strategy earns 400.00 USDC in yield.

• Gross Annualized Yield (CycleYield × 365) / AUM (400.00 × 365) / 1,000,000 = 14.6%

• Daily Management Fee (AUM × 1.5%) / 365 (1,000,000 × 0.015) / 365 = 41.10 USDC

• Performance Fee CycleYield × 15% 400.00 × 0.15 = 60.00 USDC

• Net Annualized Yield (after fees) ((CycleYield − ManagementFee − PerformanceFee) × 365) / AUM ((400.00 − 41.10 − 60.00) × 365) / 1,000,000 = 10.9%

No fees are taken from incentive yields such a WMON rewards issued as part of the Monad Momentum Campaign.

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Bridging

0% fee, aside from the gas costs required to confirm the bridge request and process via Chainlink's DON. The amount of shUSD bridged from the source network will always equal the amount of shUSD received on the destination network.