# Management fees

Ledgity vaults apply a **small management fee** to support the operational infrastructure required to source, monitor, and report real-world yield safely.

This fee **does not reduce depositors' principal** and **does not modify the advertised net APY**.\
All yields displayed in the interface are **always net of management fees**.

> **If you see 9% APY — you receive 9% APY.**\
> No hidden deductions. No surprise charges.

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### **Why Management Fees Exist**

Delivering regulated real-world yield requires:

* **Due diligence & risk screening** of financial counterparties
* **Legal & regulatory compliance** (PSAN, MiCA onboarding, KYT/KYC flows)
* **Asset custody & settlement infrastructure**
* **Execution of RWA portfolio strategy**
* **Continuous monitoring of liquidity and performance**

These are **real operating costs**, not protocol “marketing overhead.”

Management fees ensure the system remains:

* **Sustainable**
* **Auditable**
* **Regulated**
* **Scalable**

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### **Fee Structure**

| Fee                 | Rate                            | Applied To                                        | Purpose                                                       |
| ------------------- | ------------------------------- | ------------------------------------------------- | ------------------------------------------------------------- |
| **Management Fee**  | *Included in displayed net APY* | Vault yield (not capital)                         | Covers asset management, compliance, and reporting operations |
| **Impact on Users** | **None**                        | You always receive the **full net APY** displayed | Simplicity & predictability                                   |

Users **never need to calculate or claim anything** — all yields displayed are already **net of fees**.

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