# Fees The protocol earns fees through two primary means: * **Fees on minting and redemption**: currently set at zero; any future change will be communicated on official channels * **Performance fees** (share of yield generated by the protocol): * Mu Digital applies a performance-based fee designed to align the protocol’s incentives with users * The protocol earns fees only when users earn yield. A 10% performance fee is applied to realized net yield generated by Mu Digital strategies * For example, if a strategy generates 10% net annual yield, Mu Digital retains 1%, and users receive 9% * There are **no management fees and no fees on principal** Fees earned by the protocol will be used to deliver value to stakeholders and users including, but not limited to: * **Insurance Fund:** build up a liquidity buffer to further support the protocol * **Ecosystem Growth:** support integrations, partnerships, and other ecosystem initiatives * **Token Buybacks:** strategic buybacks in the future, post any potential Token Generation Event (“TGE”) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.mudigital.net/mechanics/fees.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.