> For the complete documentation index, see [llms.txt](https://docs.originprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.originprotocol.com/yield-bearing-tokens/core-concepts/performance-fees.md).

# Performance Fees

Origin charges a 20% performance fee on the yield its products generate. The fee applies to yield only, never principal, and every APY figure Origin publishes is already net of fees.

The fee applies to yield generated by OETH, Super OETH, OUSD, and Origin's ARM Vaults.

The WETH, USDe, and USDC ARM Vaults are the one case where the fee is scoped: performance fees only apply to yield generated from the vault’s arbitrage strategy. Fees are not taken from yield earned on lending markets when arbitrage opportunities aren’t present.

### How Fees are Applied

The performance fee is deducted from gross yield before distribution to holders, at the point yield is harvested and converted to the product's base collateral. It never touches principal: a depositor's underlying deposit is not charged directly, only the yield accrued on top of it.

APYs shown on Origin's analytics dashboard, the Origin dapp, and third-party tracking platforms already reflect this fee. The number displayed is what a depositor actually earns.

### How Protocol Fees are Used

Net protocol fees, after operating expenses, fund OGN buybacks on the open market. Bought-back OGN is distributed to xOGN stakers, creating a direct link between product usage and xOGN holder returns: the more yield Origin's products generate, the more OGN is bought back and distributed.

The fee rate is a protocol parameter under xOGN governance. Changes to fee configuration follow the same governance process as other protocol parameters.