Fees

Mimic employs a fee structure known as the Assets Under Management (AUM) fee curve to ensure fair and transparent fee charging for users. This fee mechanism is implemented within a dedicated component called the Fee Controller.

The Fee Controller serves as an isolated and independent component within the Mimic protocol. It is designed to enforce the fee structure and ensure that users are charged in alignment with the expected percentage based on the volume of transactions processed through the protocol.

/**
 * @dev Fee controller interface
 */
interface IFeeController {
    /**
     * @dev Tells if there is a fee set for a smart vault
     * @param smartVault Address of the smart vault being queried
     */
    function hasFee(address smartVault) external view returns (bool);

    /**
     * @dev Tells the applicable fee information for a smart vault
     * @param smartVault Address of the smart vault being queried
     */
    function getFee(address smartVault) external view returns (uint256 max, uint256 pct, address collector);
}

The AUM fee curve is a dynamic and scalable model that adjusts fees based on the total value of assets under management within the Mimic ecosystem. As the volume of assets managed by Mimic increases, the fee curve applies a proportionate percentage fee on the transactions conducted through the protocol.

This fee structure provides several benefits. First, it ensures that users are charged fees that are commensurate with the services they receive. The AUM fee curve prevents excessive or unfair fee charging, ensuring that users are not burdened with disproportionately high fees as their transaction volumes increase.

Furthermore, the Fee Controller component guarantees transparency and predictability in fee calculations. Users can expect consistent and expected percentages of fees based on the volume of transactions they conduct, providing clarity and facilitating better financial planning.

The isolation of the Fee Controller component ensures the autonomy and integrity of the fee calculation process. It operates independently, ensuring that fee calculations are not influenced by external factors or manipulation. This enhances the trustworthiness and reliability of the fee structure within the Mimic protocol.

By implementing the AUM fee curve through the Fee Controller component, Mimic demonstrates its commitment to a fair and sustainable fee model. This mechanism aligns the interests of the protocol with the users, promoting long-term partnerships and ensuring that fees charged are reasonable, transparent, and reflective of the value provided by the protocol.