Fee Structure

Fees

Pallas charges two types of fees on managed vaults: a Management Fee and a Performance Fee. Fee parameters depend on the user’s tier.

Fee Parameters

Standard Tier

• Management Fee: 1.45% annualized

• Performance Fee: 17% on net profits

Premium Tier

• Management Fee: 1.00% annualized

• Performance Fee: 15% on net profits

Fee Accrual & Realization

Management and Performance Fees accrue continuously at the vault level and are realized periodically, typically on a monthly or bi-monthly cadence.

Pallas does not use a fixed fee timestamp.

Instead, fees are realized via a strategy-level algorithm that selects the realization point within the allowed window that is most efficient for the vault. This mechanism is designed to minimize unnecessary performance drag and preserve compounding, rather than forcing fee realization at arbitrary dates.

Withdrawals

If a user exits the vault before the next fee realization, all accrued but unrealized fees are settled at the time of withdrawal.

In practice:

• Fees are computed up to the withdrawal block

• Settlement occurs atomically with the withdrawal

• Users receive the net vault share value after fees

This ensures fair accounting across all vault participants and prevents fee avoidance through early exits.

Key Properties

• Fees accrue continuously at the vault level

• No fixed monthly cutoff or hard-coded billing date

• Fee realization is strategy-aware and performance-efficient

• Withdrawals trigger immediate settlement of accrued fees