SynthOSHow SynthOS Makes Money
Transparent explanation of protocol fees and revenue model
How SynthOS Makes Money
SynthOS operates on a transparent fee structure. We only make money when you make money, aligning our incentives with yours.
Fee Structure
Performance Fees
When charged: Only when you withdraw at a profit
Rate: Configurable per strategy (10% of profits)
How it works:
- Calculated only on realized gains (when you withdraw)
- No fees if you withdraw at a loss or break-even
- Fees deducted automatically during withdrawal
Example:
Initial deposit: 1,000 USDC
Withdraw amount: 1,100 USDC
Profit: 100 USDC
Performance fee (10%): 10 USDC
You receive: 1,090 USDCWhy this is fair:
- We only profit when you profit
- No fees on unrealized gains (paper profits)
- Encourages us to recommend best strategies
Why we charge this:
- Covers AI analysis and monitoring costs
- Maintains protocol infrastructure
- Funds security audits and improvements
What We Don't Charge
No Deposit Fees
- Deposit to your vault: Free
- Allocate to strategies: Free (only gas fees)
- No hidden charges when adding funds
No Withdrawal Fees
- Withdraw from positions: Free (only gas fees)
- Withdraw from vault to wallet: Free (only gas fees)
- No penalties for early withdrawal
No Subscription Fees
- No monthly or annual membership fees
- No premium tiers or paywalls
- All features available to all users
No AI Analysis Fees
- Wallet analysis: Free
- Strategy recommendations: Free
- Portfolio monitoring: Free
- Performance alerts: Free
No Portfolio Management Fees
- Moving funds between strategies: Free (only gas fees)
- No fees for portfolio adjustments
- Unlimited rebalancing
Gas Fees (Not Paid to SynthOS)
What are gas fees?
- Network transaction fees paid to blockchain validators
- Required for all on-chain transactions
- Not paid to SynthOS - goes to the blockchain network
Typical gas costs on Scroll:
- Create vault: ~$0.05-0.10 (one-time)
- Deposit to vault: ~$0.02-0.05
- Allocate to strategy: ~$0.05-0.15
- Withdraw from position: ~$0.05-0.15
- Withdraw to wallet: ~$0.02-0.05
Cross-chain operations:
- Bridge fees: $0.50-$2.00 (paid to LayerZero)
- Destination chain gas: Sponsored by SynthOS
Gas sponsorship:
- Social wallet users may receive sponsored gas
- Reduces your out-of-pocket costs
- Limited sponsorship per user
Fee Comparison
SynthOS vs Traditional DeFi
| Action | SynthOS | Direct Protocol Use |
|---|---|---|
| Research time | AI does it (free) | 10-20 hours/week |
| Deposit | Free + gas | Gas only |
| Performance | 10% of profits | 7%-15% of profits |
| Withdrawal | Free + gas | Gas only |
| Cross-chain | Automated | Manual bridges ($5-20 each) |
Value proposition:
- Save 10-20 hours/week on research
- Automated cross-chain operations
- AI-powered strategy selection
- Pay only when profitable
SynthOS vs Centralized Platforms
| Feature | SynthOS | Centralized |
|---|---|---|
| Custody | Non-custodial (you control) | Custodial (they control) |
| Performance fee | 10% of profits | Often 20-30% of profits |
| Withdrawal limits | None | Often capped or delayed |
| Transparency | All fees on-chain | Opaque fee structures |
| Security | Self-custodial | Counterparty risk |
Fee Examples by Strategy Type
Stable Strategy (Low Risk)
Deposit: 10,000 USDC
Expected APY: 6%
Time: 1 year
Performance fee: 10%
Gross yield: 600 USDC
Performance fee: 60 USDC
Net yield: 440 USDC (4.4% net APY)Balanced Strategy (Medium Risk)
Deposit: 10,000 USDC
Expected APY: 10%
Time: 1 year
Performance fee: 10%
Gross yield: 1,000 USDC
Performance fee: 100 USDC
Net yield: 900 USDC (9% net APY)Growth Strategy (High Risk)
Deposit: 10,000 USDC
Expected APY: 15%
Time: 1 year
Performance fee: 10%
Gross yield: 1,500 USDC
Performance fee: 150 USDC
Net yield: 1,350 USDC (13.5% net APY)How Fees Are Collected
Automatic Deduction
- Fees calculated and deducted during withdrawal
- No separate fee payment transactions
- Transparent breakdown shown before confirming
On-Chain Transparency
- All fee collections recorded on-chain
- View your fee history in transaction log
- Verify fee calculations independently
Fee Wallet
- Collected fees go to protocol treasury
- Used for:
- Development and maintenance
- Security audits
- Gas sponsorship for users
- Community rewards and incentives
Common Questions
Q: Can fees change after I deposit?
A: No. The fee structure in place when you deposit is locked for that position. New fee structures only apply to new deposits.
Q: What if a strategy loses money?
A: You pay no performance fees.
Q: Are fees negotiable for large deposits?
A: Currently no, but tiered fee structures are planned for v2. Join our Telegram for updates.
Q: Do fees compound?
A: No. Fees are only collected on withdrawal, not continuously deducted from your position.
Next Steps
- Understanding Your Vault Journey - Complete user guide
Ready to start earning? Launch SynthOS App →