Fees - Shores

Shores’ yield comes from one place: interest paid by borrowers on loans secured by real property. Owners pay the yield. Brokers in Latin America and South Florida are clearing 13–15% today, so the 8% net is just the residue after fees and the split.

These are the planned fees. Final rates are set in each vault’s terms. [TBD: final fee schedule per vault]

Paid by borrowers

Fee	Planned rate	When
Interest	13–15% a year	Through the loan; the source of depositor yield
Origination points	[TBD: points]	At funding
Extension fee	[TBD]	If a loan is extended

Charged to the vault (planned)

Fee	Planned rate	Notes
Management fee	1.00% a year	Charged on vault assets before the yield is shared
Performance fee	15% of net income above an 8% hurdle	High-water mark, no catch-up
Servicing	Cost-plus [TBD: rate]	Pays for loan servicing

Fee step-down (planned). In any year when depositors’ yield after the full management fee would fall below the hurdle, the management fee is halved.

Where protocol fees go (planned)

Share	Destination
50%	Shores operating company
30%	Shores Foundation
20%	First-loss reserve inside the vault

Trading shUSD on the secondary market earns Shores no fee.

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