Performance Fee Mechanics
Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: 254900IX2F2KCWNSSS64).
Fee Structure Summary
Performance Fee
20% of net profit
Deducted before reward distribution to staking positions
Management Fee
0%
Never charged
Deposit Fee
0%
Never charged
Swap Fee
0.01%
On same-token 1:1 conversion
Withdrawal Fee
0.05%
On withdrawal
Supported same-token swaps only:
BTC → stBTC
ETH → stETH
SOL → stSOL
PAXG → stPAXG
There is no cross-asset swap function.
How the Performance Fee Is Calculated
Gross Yield
Funding payments, basis spreads, structural alpha capture, and protocol-native yield sources
Execution Costs
Exchange fees, slippage, gas, hedging overhead, and routing costs
Net Yield
Yield available for distribution after costs
Rewards accumulate in real time as the same stToken in the Staking Wallet.
We apply the performance fee before rewards are credited to staking positions.
Worked Example
Assumptions:
User deposits 10 ETH through a connected Web3 wallet
ETH is swapped 1:1 to stETH
Position is staked for a 30-day period
Entry reference value: 30,000 USDT-equivalent
Gross yield for the period: 600 USDT-equivalent
Execution costs: 120 USDT-equivalent
Gross yield
600
600
Execution costs
-120
-120
Net yield
600 - 120
480
Performance fee (20%)
480 × 20%
-96
User receives
480 × 80%
384
Net return to user
384 / 30,000
1.28% over 30 days
Assumptions:
Same base conditions as above
90-day booster applied
Booster multiplier: +50%
Base gross yield over 90 days
600 × 3
1,800
Booster-adjusted gross yield
1,800 × 1.5
2,700
Execution costs
~540
-540
Net yield
2,700 - 540
2,160
Performance fee (20%)
2,160 × 20%
-432
User receives
2,160 × 80%
1,728
Current booster schedule:
14D: +10%
30D: +20%
90D: +50%
180D: +100% (2×)
For fixed pools, unstaking is available only after the lock-up period ends. There is no early exit option.
Why Performance Fees Align Incentives
A performance fee aligns operator economics with realized user outcomes more closely than an asset-based management fee.
Management fee
Assets remain deposited, regardless of performance
Operator may earn during flat or negative periods
Performance fee
Platform generates positive net yield
Operator earns only when users earn
BASIS charges 0% management fee and 20% performance fee only.
This means:
If net yield is zero, no performance fee is charged
If net yield is negative, no performance fee is charged
Operator compensation depends on positive realized performance, not simply asset growth
This model is supported by deterministic execution, mathematical portfolio constraints, and state-machine-based risk controls across the BASIS execution stack.
High-Water Mark
A high-water mark means performance fees apply only to new net profits above the previous peak.
If a pool declines below its prior high-water level and later recovers, performance fees are charged only on gains above that previous peak. Recovery back to the earlier level is not charged again.
BASIS applies high-water mark logic on a pool-cycle basis. If positions are rolled across cycles, refer to the relevant pool documentation for cycle reset handling.
Operational Context
BASIS combines research from Base58 Labs with proprietary routing and execution infrastructure designed for:
Sub-50μs latency
100K+ OPS throughput
Deterministic execution quality
Structural alpha capture under strict risk constraints
These controls are intended to reduce avoidable execution loss and preserve execution precision across staking-related yield strategies.
Related References
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