# Fees

> The one fee on supplied stock, a performance fee on harvested profit capped at 25% by the contract, where it goes, what is free, and the trading costs you see in the app.

Source: https://app.tango.finance/docs/vault/fees

Supplying a stock carries one fee: a performance fee on the profit that is harvested. There is no fee on deposits or withdrawals, and none on the stock you hold. The fee is paid in the stablecoin, at the moment profit is turned into stock, so it only ever comes out of profit. This page explains how it is worked out, where it goes, and the other costs you meet when you use the app.

> **Key points**
>
> - The performance fee is a share of each harvest. The contract caps it at 25%. Each stock's rate is shown on its page.
> - The fee is paid in the default stablecoin to the fee recipient, inside the harvest. The rest of the profit buys stock.
> - There is no deposit fee, no withdrawal fee and no fee on a rebuy after a liquidation.
> - Buying, selling and moving funds in the app have their own route fees, shown in the Fees row before you confirm.

## The performance fee

The performance fee is the share of every harvest that goes to the fee recipient. Each stock's rate is shown in the Fees card on its page. The contract refuses any rate above 25%.

Only the curator can change the rate, and every change, up or down, waits the curator's delay. A rate above zero needs a fee recipient. See [Timelocks](https://app.tango.finance/docs/vault/timelocks.md).

### How the fee is calculated

A harvest takes an amount of profit from the stablecoin book. It holds back the most the fee could be, and hands the rest to the swapper to buy stock. The fee is then the fee rate applied to everything the harvest converted, the fee included. If the swap route hands back part of its input unspent, that part returns to the book with no fee.

For example, with a 10% rate, a harvest that takes 100 of profit pays 10 to the fee recipient and buys stock with 90. This rate only illustrates the arithmetic. Each unit of profit pays the fee at most once, however a harvest is split or filled.

The fee applies only to profit that is harvested. A loss pays no fee. Money-market rewards pay the fee too, because they reach holders through a harvest. See [Reward claiming](https://app.tango.finance/docs/vault/rewards.md).

### Where the fee goes

The fee is paid to the fee recipient, in the default stablecoin, during the harvest. The curator sets the fee recipient, behind its delay. If the recipient cannot receive the stablecoin, for example because the stablecoin's issuer has blocked that address, every harvest with a fee fails until the curator names another. Nothing holders own is at risk in the meantime, and rebuys still work.

## What is free

| Action | Fee |
| --- | --- |
| Supply (deposit) | None |
| Standard withdrawal | None |
| Forced withdrawal | None |
| Rebuy after a liquidation | None |
| Holding shares | None |

A forced withdrawal charges no fee. While the stablecoin book is short, it does ask the caller to pay their share of the shortfall. That is a share of a loss, not a fee, and the tango.finance app never sends such a withdrawal. See [Withdrawals](https://app.tango.finance/docs/vault/withdrawals.md#what-the-caller-may-be-asked-to-pay).

## Costs inside the strategy

Running the strategy has costs that are not fees. Borrowing interest builds up on the debt, lending income has to cover it, and it appears in Borrowing APY. Each swap, from one stablecoin to another or into the stock, pays its route's own costs. The contract refuses a swap that loses more than its tolerance against oracle prices. The contract caps each tolerance at 5%. The curator sets them, behind its delay.

## Costs in the app

Some costs come from using the app rather than from supplying:

- Buying and selling a stock goes through a swap route. The Fees row in the Buy and Sell dialogs shows every fee that route reports, as a share of what you sell. See [Buy and sell](https://app.tango.finance/docs/app/buy-and-sell.md#what-each-row-means).
- A move between networks goes through a route that charges its own fees, shown in the Fees row of Move funds. See [Move funds](https://app.tango.finance/docs/app/move-funds.md).
- Every transaction your wallet sends pays the network's gas fee, in the network's own token.

The Supply dialog shows no fee rows, because nothing is charged to supply or withdraw. The stock's page states both the performance fee and "No fee" for deposits and withdrawals.