# 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 %}


---

# 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://yuzu-money.gitbook.io/yuzu-money/faq/performance-fee.md?ask=<question>
```

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.