# Fees

Divigent charges a protocol fee only on realised yield.

The fee model is:

* 10% of realised yield, calculated at withdrawal time.
* Zero fee if no realised yield exists.
* Zero fee if the withdrawal returns less than principal.
* No fee on principal under any condition.

## How Realised Yield Is Calculated

The router measures realised yield from the actual USDC received during withdrawal, not from estimates:

```
actualGross = USDC balance after redemption - USDC balance before redemption
realisedYield = max(actualGross - principalOut, 0)
fee = ceil(realisedYield * 10%)
netToWallet = actualGross - fee
```

`principalOut` is the proportional slice of the wallet's `costBasisUSDC` corresponding to the dvUSDC being burned. This is the protocol's record of how much principal the wallet originally contributed for those shares.

If `actualGross <= principalOut`, realised yield is zero and the fee is zero.

## Why Post-Redemption

Vault calls can include rounding, liquidity effects, or exact-asset redemption behaviour. Estimating fees from share prices before redemption could over-charge or under-charge. Divigent measures actual delivered USDC and applies the fee only after the router knows what actually arrived.

## Fee Collection

The `DivigentFeeCollector` does not custody USDC.

When a fee exists, the fee collector pulls the fee amount directly from the router to the treasury using `safeTransferFrom`. The router holds the USDC for the duration of the withdrawal transaction only.

## Treasury Rotation

The fee treasury can be rotated, but the path is intentionally slow:

* 7-day timelock between rotation proposal and execution.
* 14-day grace window after the timelock during which the rotation can be executed.
* Gated through the emergency multisig.

This prevents a single rapid action from redirecting protocol revenue without on-chain visibility.

{% hint style="success" %}
Divigent fees are charged on realised yield only. Principal is never charged a protocol fee.
{% endhint %}


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