> For the complete documentation index, see [llms.txt](https://yuzu-money.gitbook.io/yuzu-money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yuzu-money.gitbook.io/yuzu-money/faq/performance-fee.md).

# Performance Fee

Rather than charging a performance fee on every positive P\&L event - which creates unpredictable yield and amplifies payout volatility. Yuzu Money takes a fixed-fee approach: ***no performance fee***, and dynamically adjusted APY distribution to depositors based on the following mechanisms:

#### **Yuzu Alpha: How It Works**

**Surplus weeks:** When realized P\&L exceeds the distributed yield, the excess accrues to the Reserve Fund.

**Deficit weeks:** When realized P\&L falls short, the Reserve Fund covers the gap.

This yield-smoothing mechanism is designed to deliver more consistent weekly distributions while allowing the protocol to pursue high-quality strategies whose returns may be uneven week to week.

{% hint style="info" %}
*Yuzu Money posts a discretionary yield APY for syzUSD and yzPP on a weekly and daily basis respectively. This APY is subject to market volatility and a small spread is taken between the actual yield earned on deployed strategies and posted yield for the two tokens.*
{% endhint %}

#### **Yuzu Prime: How It Works**

Continuous yield adjustment based on what the underlying strategies and assets are yielding.

{% hint style="info" %}
*Yield distributed to yzPrime is continuous (with no weekly epochs unlike Yuzu Alpha). This APY is subject to market volatility and a small spread is taken between the actual yield earned on deployed strategies and posted yield for the two tokens.*
{% endhint %}