Partner Fees
⏱️ 4 min read
The DeFindex Ecosystem
DeFindex operates with three key participants working together:
DeFindex: The protocol that provides the infrastructure, smart contracts, and yield-generating strategies.
Partners: Assets managers, Wallets, fintechs, or applications that integrate DeFindex to offer yield products to their users. Partners configure fees for their specific integration.
End Users: People who deposit funds through a partner's application and earn yield on their assets.
This model allows partners to monetize their user base while offering competitive yield products, and users benefit from easy access to DeFi opportunities through trusted applications.
Performance-Based Fee Model
Partner fees in DeFindex follow a simple principle: fees are only charged on the yield generated, never on the deposited capital.
How It Works
If your vault generates yield, a percentage goes to the partner and DeFindex
If there's no yield, there are no fees
Your principal investment is never touched by fees
Fee Limits
Maximum fee: 90% of generated yield
Typical range: 50%-30% of generated yield
This performance-based model ensures that partners only earn when users earn. There's no incentive to charge fees on idle capital.
Transparency for Users
One of DeFindex's core principles is transparency. When a user sees an APY displayed in their partner's application:
The APY shown is already net of all fees
Users see exactly what they will receive
No hidden deductions or surprise charges
What Users See vs What Happens
15% APY
User will earn 15% annually on their deposit if the market conditions stays stable
Vault performance
Already accounts for partner fees
Balance growth
Reflects actual returns after all fees
This approach eliminates confusion. The number users see is the number they get.
Aligned Incentives
The performance-based fee model creates natural alignment between all parties:
For Partners
Earn revenue only when users profit
Incentive to promote well-performing vaults
No temptation to charge fees on underperforming products
For Users
Capital is protected from fees
Only pay when earning
Confidence that partners want the same outcome: good returns
For DeFindex
Protocol grows when users and partners succeed
Focus on building better yield strategies
Sustainable ecosystem development
This alignment means everyone benefits from the same goal: generating real yield for depositors.
Fee Distribution
When yield is generated, fees are distributed completely on-chain:
Yield is generated by the vault's strategies
Partner fee is calculated based on their configured percentage
Distribution occurs when the partner triggers it
Fees are split between the partner and DeFindex
The split between partner and DeFindex is handled internally by the protocol.
Practical Example
Let's walk through a concrete scenario:
Setup
User deposits $10,000 USDC through a partner's app
The vault's strategy generates 15% APY
Partner has configured a 50% performance fee
After One Year
Gross yield generated before fees (15% APY)
$1,500
Partner + Defindex fee (50% of yield)
$750
Net yield to user
$750
Result
User receives: $750 in yield (7.5% net APY) — passive income with zero effort
User's capital: $10,000 remains fully protected
Partner revenue befroe Defindex fee: $750 annually per user — recurring revenue stream
For a partner with 1,000 active users, this represents $750,000 in annual revenue while providing real value to their users.
Key Takeaways
Performance-based
Fees only on yield, never on capital
Net APY display
Users see what they actually earn
Aligned incentives
Partners profit when users profit
On-chain distribution
Transparent, on-chain fee handling
Protected principal
Deposits are never reduced by fees
Learn More
Understanding APY — How APY is calculated and what it means
Vault Roles — Understanding the different roles in vault management
Get APY — How to fetch APY programmatically
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