Fee Structure
Catpound has two types of fees: an exit fee on withdrawals during the silent phase, and a protocol fee on compounded rewards. Both are designed to reward long-term holders and sustain the protocol.
Exit Fee (Slash)
The exit fee is charged when you withdraw during the silent phase (the period after a compound window closes). It decays linearly from the maximum rate for your tier to 0% over 2,001 blocks (approximately 14 hours).
MotoSwap enforces a 20% slashing fee on early unstaking from MotoChef, with its own decay period. Catpound's base exit fee is designed to always be half or less of MotoSwap's slashing rate, so you are always better off using the vault than staking directly. With tier upgrades (NFT staking, whale tiers), the exit fee can be reduced even further.
How Decay Works
The fee starts at your tier's maximum exit fee and decreases every block:
Current Fee = Max Fee x (2,001 - Blocks Since Close) / 2,001
Example: Tier 0 (10% Maximum Exit Fee)
| Blocks Since Window Closed | Exit Fee |
|---|---|
| 0 | 10.00% |
| 250 | 8.75% |
| 500 | 7.50% |
| 1,000 | 5.00% |
| 1,500 | 2.50% |
| 2,001+ | 0.00% (free) |
Example With Numbers
Suppose you have 1,000 cpMOTO at a share price of 1.10 MOTO per share. Your redemption value is 1,100 MOTO.
- Withdraw at block 0 (right after window closes, tier 0): 10% fee = 110 MOTO fee. You receive 990 MOTO.
- Withdraw at block 1,000: 5% fee = 55 MOTO fee. You receive 1,045 MOTO.
- Withdraw at block 2,001+: 0% fee. You receive the full 1,100 MOTO.
- Withdraw during open window: 0% fee. You receive the full 1,100 MOTO.
Where Does the Exit Fee Go?
Exit fees stay inside the vault. They are not sent to the treasury or the team. The fee increases total assets without changing the cpMOTO supply, which raises the share price for everyone who remains in the vault.
This mechanism protects long-term holders from short-term capital that enters before a compound and exits immediately after.
Protocol Fee
The protocol fee is taken from harvested rewards when the compound window closes. It is calculated on the reward delta (new MOTO earned since the window opened), not on the total vault balance.
How It Works
- Window opens: rewards are harvested and swapped to MOTO.
- The vault calculates the reward delta:
Current Balance - Pre-Harvest Balance - Deposits During Window. - The floor protocol fee (default: 2% / 200 BPS) is applied to the reward delta.
- The fee amount is sent to the treasury address.
- The remaining rewards are re-staked along with the rest of the vault's MOTO.
Example
If the vault harvests 100 MOTO in rewards and the floor protocol fee is 2%:
- Protocol fee: 2 MOTO (sent to treasury)
- Remaining: 98 MOTO (re-staked into MotoChef for all depositors)
Per-User Surcharge
Users on higher-fee tiers pay an additional per-user surcharge on top of the floor fee. This is tracked via an accumulator pattern -- when the vault compounds, it records the per-share reward, and when users interact with the vault (deposit, withdraw, transfer), any owed surcharge is settled.
Fee Summary
| Fee Type | When Applied | Where It Goes | Default Rate |
|---|---|---|---|
| Exit fee (slash) | Withdrawals during silent phase (enforced by MotoSwap slashing fee) | Stays in vault (benefits remaining holders) | Decays from 10% to 0% over 2,001 blocks (tier 0) |
| Protocol fee (floor) | On compound (reward harvest) | Treasury | 2% of rewards |
| Protocol fee (surcharge) | On compound (per-user) | Treasury | Varies by tier (0-5% above floor) |
How to Pay Zero Fees
- Withdraw during the free exit window: When the compound window is open, exit fees are 0%.
- Wait for full decay: If the window is closed, wait 2,001 blocks (~14 hours) for the exit fee to reach 0%.
- Upgrade your tier: Higher tiers have lower maximum exit fees. See Tier System.
The vault page shows a real-time countdown of blocks until free exit. Check it before withdrawing.