Fees
Alloc8 charges a 10% performance fee on realized yield (profits). This fee applies only to yield earned (such as LP trading fees and other supported harvested rewards, depending on the strategy). It does not apply to your deposited principal.
If no yield is realized at the time of collection, no performance fee is charged.
When the fee is collected
The performance fee is collected only when Alloc8 collects/compounds yield during:
Rebalance execution, or
Autocompound execution (runs every Sunday at 7:00 PM UTC)
Example
If your position realizes $100 in yield at a rebalance/autocompound event:
Performance fee (10%): $10
Net yield added to your position (90%): $90
Verifying on-chain
To verify fee collection:
Open the rebalance/autocompound transaction in a block explorer.
Locate the step where yield is collected/compounded.
Confirm that a portion of realized yield is routed to the protocol treasury/fee recipient, and the remainder follows your Smart Account/position flow per the strategy.
Gasless rebalances and execution conditions
Rebalances and autocompounds are gasless for users on Alloc8. The protocol pays gas, and these costs are subsidized from the performance fee.
Rebalances are triggered dynamically, typically when: fees/yield earned by your position > gas cost to run the rebalance.
If gas becomes very high, it may be uneconomical to rebalance smaller positions. In such cases, your position may appear out of range on the frontend until rebalancing becomes economical again. We recommend a position size of at least $500 for smoother rebalances.
Fee changes
The performance fee is currently 10%. Any future updates will be communicated to users.
Quick FAQs
Do I pay gas for rebalances or autocompound? No. Rebalances and autocompounds are gasless for users. The protocol pays gas, and this cost is covered using part of the performance fee.
Why didn’t my position rebalance / why is it out of range? Rebalances usually happen when earned fees/yield are higher than the gas cost to run the rebalance. If gas costs rise a lot, it can become uneconomical to rebalance smaller positions, so your position may remain out of range until conditions improve.
Is there a recommended position size? Yes. We recommend $500 or more for smoother and more consistent rebalances.
Can the fee change? The performance fee is currently 10%. If it changes, Alloc8 will inform users.
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