> For the complete documentation index, see [llms.txt](https://docs.mangrove.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mangrove.exchange/dev/vaults/custom-interactions/managing-a-vault/setting-fee.md).

# Setting fee

{% hint style="info" %}
At the contract level, we hav e 100% = 1e5
{% endhint %}

For the vaults, there exists two types of fees. Management fees, and performance fees. 

Management fees are a portion of the manage assets expressed in percentage per year. They are capped at 5%, but are not recommended to use.

Performance fees are computed thanks to the oracle as the performance on quote value of the position. They are capped at 50%.

The fee recipient is an account that will receive the computed fees in vault shares. Setting a new fee recipient will transfer all pending fees to the previous fee recipient.

{% @github-files/github-code-block url="<https://github.com/mangrovedao/mangrove-vault/blob/899abdb187f1801ba44621c0e25a697edda859e7/src/MangroveVault.sol#L843>" %}