# Protocol Fees

By default, a **10% performance fee** is applied to all vaults deployed using ICHI smart contracts. This fee is automatically taken from the swap fees generated within the vault.

**Example:**\
If a vault generates **$100 in fees**,

* **$90** are auto-compounded back into the LP position
* **$10** are routed to the ICHI protocol

This fee supports ongoing infrastructure, automation, and protocol maintenance.\
No action is required from the user — everything is handled automatically on-chain.

Custom fee structures may be available for enterprise or partner deployments.


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