1 · Simple profit
Deposit $10,000**. The vault grows to **$13,000. You exit everything.- Principal returned fee-free: $10,000
- Realised profit: $3,000 → fee $300
- You receive $12,700.
2 · Exit at a loss
Deposit $10,000**. The vault falls to **$8,000. You exit everything.- You are below your high-water mark. Profit: $0 → **fee $0.**
- You receive $8,000. No fee ever applies to a loss.
3 · Partial withdrawal below the mark
Deposit $10,000**. The vault grows to **$13,000. You withdraw $6,000.- Cumulative withdrawn ($6,000) ≤ contributed ($10,000): still under the mark → fee $0.
- Your remaining fee headroom is $4,000 — you can take that much more before any fee starts.
4 · Crossing the mark
Continuing from example 3, you later withdraw another **$7,000** (cumulative withdrawn: $13,000).- The first $4,000 exhausts your remaining headroom → fee-free.
- The last $3,000 is new profit → fee $300.
- Your taxed total is now $3,000, so the mark rises to $13,000 — that profit can never be charged again.
5 · Withdraw, redeposit, withdraw — no double charge
Deposit $100**, vault grows, you withdraw **$150 (fee charged on $50). You redeposit **$100** and later withdraw $100.- Contributed: $200 · withdrawn before this exit: $150 · already-taxed: $50 → mark = $250.
- Cumulative withdrawn after this exit: $250 — exactly at the mark → **fee $0.**
- The $50 of profit was taxed once and only once, exactly as designed.
6 · Stale feed at exit
You exit with real profit, but a price feed your vault relies on has gone stale.- The vault refuses to compute a fee from a stale price: fee waived, $0 charged, and the waiver is logged as an explicit event in your statement.
In every case the app’s fee projection shows you these numbers before you sign.