> ## Documentation Index
> Fetch the complete documentation index at: https://docs.superform.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Economics

> SuperVault fee structure: management fees, performance fees, upkeep costs, and the fee skimming mechanism.

All fees taken are configurable by the strategist with a split to Superform that can be turned on by governance.

| Fee Type    | Description                                                                           |
| ----------- | ------------------------------------------------------------------------------------- |
| Management  | Configurable by the strategist, applied to the initial deposit amount                 |
| Performance | Configurable by the strategist, applied to profits above cost basis when users redeem |
| Upkeep      | Strategists pay UP tokens for validators to update prices                             |

### Fee Skimming Mechanism

Performance fees are taken only from realized profits, these fees are obtained periodically via the fee skimming mechanism.

The high-water mark is the last price-per-share level at which performance fees were taken; fees are only charged on PPS growth above this baseline, and after each fee skim the new (post-fee) PPS becomes the updated high-water mark for future calculations.

Because deposits and redemptions are PPS-neutral, the high-water mark only moves when yield has actually been realized and fees are skimmed on that realized profit.