# Fees

Shift uses a performance-based fee model. Fees are applied only to generated yield — not to your initial deposit.

In practice:

* the system periodically collects rewards from strategies (harvest)
* converts them into underlying assets
* reinvests the profit
* takes a percentage as a fee

This aligns incentives: Shift earns only when users earn.

The fee is dynamic:

* higher when yields are strong
* lower (or zero) during weaker market conditions


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