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💰 Fees

The Baskets Protocol has a simple and transparent fee structure designed to support the protocol's health and reward successful basket creators.

Management & Creator Fees​

Each basket is subject to a 1.0% annual fee, which is accrued on a daily basis from the basket's Total Value Locked (TVL). This is a fixed base rate. The fee is broken down as follows:

  • 0.9% Protocol Fee: This portion goes to the Baskets Protocol treasury to fund ongoing development and operations.
  • 0.1% Creator Fee: This portion is awarded to the creator of the basket.

Important Note: The Creator Fee is only activated once a basket's TVL surpasses $10,000. Before this threshold is met, the full 1% fee is directed to the protocol treasury.

How Fees Are Collected​

Fees are collected in a non-dilutive way. Instead of selling a basket's assets, the protocol slowly mints new basket tokens. These tiny, newly created fractions of tokens are then allocated to the creator's wallet and the protocol's fee-holding account.

This method ensures that an investor's number of basket tokens never decreases due to fees.

Swap Fees​

A 0.05% swap fee is applied to all deposits made into a basket. This fee is immediately sent to the protocol treasury and helps cover the costs associated with swaps and network operations. There are no fees on withdrawals.

Estimated Annual Fee & Rebalancing Costs​

On the basket detail page, you will often see a slightly higher estimated annual fee (e.g., "~1.24%"). This is because the estimate includes not only the flat 1% management fee but also the projected gas costs for automated rebalancing swaps over one year.

Why do rebalancing costs change?​

The cost of rebalancing is variable because the on-chain logic is designed to be gas-efficient. The frequency of keeper-driven rebalancing adjusts based on the basket's TVL:

  • Low TVL Baskets: Rebalance less frequently to conserve gas costs relative to their total value.
  • High TVL Baskets: Rebalance more frequently to stay closer to their target allocations. The rebalancing frequency scales with TVL until it reaches a maximum cap of once per day for any basket with over $30,000 in TVL.

This dynamic frequency means the total annual gas cost is an estimate.

The Rebalance Executor​

To ensure rebalancing is autonomous, each basket has a dedicated rebalance_executor account. This is a Program Derived Address (PDA) that is automatically funded by the protocol. It acts as a small gas tank, holding enough SOL to pay the transaction fees for its basket's rebalancing swaps. This ensures that rebalancing happens reliably without requiring intervention from the keeper's main wallet or the user.