This article explains how Loyalty Tiers affect Vault participation, including how fees change based on your level and why holding more PRN can reduce overall Vault costs.
How do Loyalty Tiers affect my Vault returns?
Your loyalty tier directly impacts your net returns by reducing the fees that are deducted from your profits. Loyalty Tiers are dynamic and are determined by the percentage of PRN you hold relative to your overall portfolio and mortgage balances.
| Feature |
Basic Up to 1.99% |
Silver 2% – 5.99% |
Gold 6% – 9.99% |
Diamond 10% + |
|---|---|---|---|---|
| Entry Fee | 1% | 0.5% | 0.25% | — |
| Management Fee | 2% | 2% | 2% | 2% |
| Performance Fee | 20% | 15% | 10% | 5% |
| Exit Fee | 1% | 0.5% | 0.25% | — |
Important Note: Your applicable Vault fees are locked in based on your Loyalty Tier at the moment of the transaction (Entry or Exit).
What Happens as Your Loyalty Tier Increases
Higher Loyalty Tiers 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 Loyalty Tiers 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 Tier, lowering applicable fees.
Loyalty Tiers are recalculated dynamically; therefore, maintaining your PRN balance is essential to securing these lower fees.
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