# Revenue Model ## Universal Fee Vesper uses a simple, transparent fee structure designed to ensure you never earn negative returns on your deposits. *\*APY shown on the Vesper app is calculated after all fees have been applied.* #### How It Works Vesper charges a **2% annual fee** on your deposited principal, collected from your earned yield at each rebalance. However, this fee is capped. If 2% of your principal exceeds half of what you've earned, only 50% of your yield is taken instead. #### Why This Model? The universal fee eliminates that possibility while remaining straightforward to understand. * **No withdrawal fees** means you can withdraw anytime without penalty. * **No deposit fees** enable your full deposit to go to work immediately. * **Fees come only from yield,** so your principal is never touched. #### Fee Calculation At each rebalance, the fee is calculated as: ``` Fee = 2% * (blocks since last rebalance / blocks per year) * TVL ``` If this amount exceeds 50% of the yield earned, the fee is reduced to 50% of the yield instead. ## Yield Mechanics For community pools, a 5% share of both of these fees goes to the developer who authored the strategy. This is paid in the pool’s asset. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.vesper.finance/vsp-economics/revenue-model.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.