This article explains how Loyalty Levels affect Vault participation, including how fees change based on your level and why holding more PRN can reduce overall Vault costs.
How Loyalty Levels Apply to Vaults
Your Loyalty Level directly impacts the fees you pay when using Peoples Reserve Vaults. As your Loyalty Level increases, certain Vault fees are reduced or removed entirely.
Loyalty Levels are determined by the percentage of PRN you hold relative to your overall portfolio and mortgage balances. Because Loyalty Levels are dynamic, your Vault fees can adjust if your level changes.
Vault Fees by Loyalty Level
The table below shows how Vault fees scale across Loyalty Levels:
| Fee Type | Basic | Silver | Gold | Diamond |
|---|---|---|---|---|
| Entry Fee | 1% | 0.5% | 0.25% | 0% |
| Management Fee | 2% | 2% | 2% | 2% |
| Performance Fee | 20% | 15% | 10% | 5% |
| Exit Fee | 1% | 0.5% | 0.25% | 0% |
What Changes as Your Loyalty Level Increases
Higher Loyalty Levels primarily reduce friction when entering, exiting, and participating in Vaults:
- Lower or eliminated entry and exit fees
- Reduced performance fees on Vault earnings
- More efficient long-term participation
Management fees remain consistent across all Loyalty Levels.
Why PRN Holdings Matter for Vault Users
Holding more PRN can significantly reduce the total cost of Vault participation over time. Even small increases in your PRN ratio may move you into a higher Loyalty Level, lowering applicable fees.
Because Loyalty Levels are recalculated dynamically, maintaining your PRN balance helps preserve your Vault benefits.