Fee Structure
DiversiFi Fee Model
Swap Fees (Deposits & Withdrawals)
A small fee of 0.5% is charged when users deposit into or withdraw from an index.
Management Fees (Vault Value)
An annualized management fee of 1% of the vault’s total value (TVL) in USD, covering the costs of automated vault management such as monitoring, rebalancing, and infrastructure security.
Because index tokens are fungible and designed for future composability, fees cannot be tied to individual wallets or deducted at withdrawal. Instead, we implement a small, controlled inflation mechanism: new index tokens are minted daily at a rate equivalent to 1% per year. These minted tokens represent the fee and are directed to the protocol (similar to some ETF mechanism in traditional finance).
This approach ensures:
Predictability → the fee is applied consistently, regardless of user behavior (active trading vs. long-term holding).
Fairness → no user is penalized based on timing of entry/exit; all holders share the same proportional impact.
Composability → keeps the index token fungible for future use across DeFi (e.g. lending, collateral), unlike wallet-linked debt models.
Sustainability → provides a reliable revenue stream for protocol operations and BONK burns.
BONK Fee System
As DiversiFi is part of the BONK ecosystem, a portion of all fees is used to buy and burn BONK:
On BONK Indexes:
80% of all fees collected are swapped into BONK and permanently burned.
On all other Indexes:
20% of all fees collected are swapped into BONK and burned.
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