> For the complete documentation index, see [llms.txt](https://docs.yodl.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yodl.fi/strategy-and-execution/fee-and-revenue-model.md).

# Fee & Revenue Model

<figure><img src="/files/InFCPvvGEA783UpVqy9m" alt=""><figcaption></figcaption></figure>

At the start of each epoch, every Operator defines **two fixed per-trade allocation percentages** — one assigned to **Curators** and one assigned to **$YODL Delegators**.

* Both are expressed as a percentage of the notional trade value (e.g., 0.1% for Curators, 0.2% for $YODL Delegators).
* Governance sets a **minimum threshold** for these allocations to ensure consistency for capital participants.
* These fixed allocations remain constant throughout the epoch and apply to every verified fill.

Whatever remains from the Operator’s quoted fee (after Curator and $YODL delegators) accrues to the **Operator** as **variable execution retention**, covering gas, infrastructure, and operation costs.

{% hint style="info" %}
Operators cannot set fee parameters below governance minima; quotes that do not meet thresholds are rejected by the Orchestrator.
{% endhint %}

Fee Parameter Range: 0.05% – 1.00% of notional fill value.

#### **Surplus Share (%)**

Each Operator also defines a **Surplus Share (%)**, representing the percentage of **Net Surplus** they retain from efficient executions.

Participants who delegate $YODL may view each Operator’s surplus-share settings and fixed-allocation configuration.

The Surplus Share applies **only** when an Operator generates positive Net Surplus.\
If a **liquidation** occurs during the epoch, any deficit adjustments applied to delegated YODL are reflected before applying the Operator’s surplus share.

This model ensures:

* A predictable fee structure for Curators and $YODL Delegators
* Performance-driven upside for Operators (via conditional surplus)
* Protocol solvency maintained through the Stability Fee, without diluting participant fees

{% hint style="info" %}
The protocol does not retain any share of execution fees; it is sustained independently via the Stability Fee applied to Delegators, separate from trading revenue.
{% endhint %}

#### Economic Summary

| Participant      | Operational Costs                                 | Compensation Source                                       | Risk                              | Compensation Profile       |
| ---------------- | ------------------------------------------------- | --------------------------------------------------------- | --------------------------------- | -------------------------- |
| Vault Curator    | Near-zero gas overhead                            | Fixed Curator Fee                                         | None                              | Stable fee-share per trade |
| $YODL Delegator  | Near-zero gas overhead                            | Fixed Delegator Fee + surplus generated by their Operator | Bounded liquidation exposure      | Variable fee-share         |
| Network Operator | Infrastructure + transaction gas cost             | Maker Fee + conditional surplus                           | Slashing risk for non-performance | Execution profit           |
| YODL Protocol    | Stability Fee processing + restoration management | Stability Fee                                             | Protocol solvency                 | System-level balance       |