Fee Structure
Low Fees. No Hidden Charges.
The fee structure consists of a 2% management fee and a 10% performance fee. If the weekly strategy is profitable, the weekly performance fee is charged on the premiums earned. If the weekly strategy is unprofitable, performance is not charged. However, the management fee will always be charged irrespective of the profitability of the weekly strategy.
The management fee is applied as a percentage of the total assets in the vault, while the performance fee is applied to the premium received or yield generated by the vault every week.

Working Mechanism

Suppose you invested 1 WETH in the WETH Covered Call Vault. Assuming WETH is at $2000, the strike price for the call option is $2500, and the premium is at 0.0045 WETH.
Management fee is charged annually @ 2% i.e. 2%/52 Weeks = 1 WETH x 0.02/52 = 0.00038 WETH.
Since the performance fee is only charged when the expiry happens out of the money or the week was profitable, it will equal 0.0045 x 0.1, i.e. 0.00045 WETH.
The net gain made by the users is therefore 0.0045 - 0.00045 - 0.00038 = 0.00367 WETH which is ~ 20.9% APY net of fees.
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