> For the complete documentation index, see [llms.txt](https://docs.ledgity.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ledgity.finance/governance-council/protocol-fees/performance-fees.md).

# Performance fees

Ledgity vaults generate yield from **real-world, cash-flow producing assets**.\
A **performance fee** applies **only** on **net yield actually earned** by the portfolio.

> **No yield → no performance fee.**\
> The protocol is only compensated when depositors earn returns.

There is **no fee on your initial capital**, and **no fee on unrealized gains**.