> 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/withdraw-fees.md).

# Withdraw fees

Withdrawals on Ledgity vaults are designed to remain flexible while ensuring stable portfolio management.\
A **small withdrawal fee of 0.3%** applies to standard withdrawals. This fee is necessary to ensure that withdrawals do not disrupt yield performance or liquidity allocation across the RWA portfolio.

> **There are no hidden spreads or dynamic penalties.**\
> The withdrawal fee is stable, predictable, and visible directly in the interface.

***

### **Standard Withdrawal Fee**

| User Type                           | Withdrawal Fee | Description                                                                         |
| ----------------------------------- | -------------- | ----------------------------------------------------------------------------------- |
| **Default Users**                   | **0.3%**       | Applies to all withdrawals when liquidity is available or processed normally        |
| **veLDY Stakers**                   | **0%**         | Users who stake LDY and hold veLDY benefit from a lower withdrawal fee              |
| **Council Stakers (≥ 500,000 LDY)** | **0%**         | Council members withdraw without any fee, reflecting their operational contribution |

***

### **Why the Withdrawal Fee Exists**

Ledgity vaults invest in **short-duration, real-world financial assets**.\
Unwinding these positions cleanly incurs operational and settlement costs.

The fixed 0.3% withdrawal fee:

* Protects yield stability for all users
* Prevents forced asset sales during market movements
* Ensures treasury and liquidity remain healthy
* Maintains a stable Price-Per-Share (PPS) evolution

This model is similar to **liquidity management fees** used in regulated money-market and fixed-income funds.

***

### **Priority Liquidity for veLDY Holders**

Staking LDY and holding veLDY provides:

| Benefit                   | Impact                                                 |
| ------------------------- | ------------------------------------------------------ |
| Reduced withdrawal fee    | Lower cost for exiting the vault                       |
| Higher liquidity priority | Faster fulfillment when demand for withdrawals is high |
| Governance participation  | Influence on parameters, including liquidity settings  |

This mechanism ensures **long-term aligned users benefit the most** from protocol performance.

***

### **Large Withdrawals (>10% TVL)**

For large institutional redemptions, the protocol activates the **withdrawal coordination desk**, ensuring:

* Controlled unwinding of assets
* No negative impact on other depositors
* Clear communication timeline (generally **up to 72h**, exceptional cases discussed privately)


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