# Management Fee The management fee mechanism is designed to compensate operators for their ongoing services in overseeing the Onchain Investment Vehicle (OIV). The fee is accrued periodically, reflecting the time elapsed since the last distribution and the NAV of the OIV during that period. *** ## **Principles** 1. **Payment Method**: * The performance fee is distributed in shares, ensuring alignment between the operator and the investors. *** ## Formula $$ M = NAV\times \frac{t-\tau}{Y}\times r\_M $$ Where: * $$M$$: due Management Fee * $$NAV$$: total Net Asset Value * $$t$$: current timestamp * $$\tau$$: previous fee distribution timestamp * $$Y$$: Distribution period (usually a year) * $$r\_M$$: the annual Reward rate --- # 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://docs.rethink.finance/rethink.finance/protocol/architecture/admin-contract/fees/management-fee.md?ask= ``` 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.