# Redemption Fee

The redemption fee is a one-time charge applied when depositors redeem capital from the On-chain Investment Vehicle (OIV), calculated as a percentage of the redeemed amount.

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## **Principles**

1. **Payment Method**:

* The performance fee is distributed in denomination (base asset) of the given On-chain Investment Vehicle.

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## Formula

### Redemption Fee

$$
NAV\_{redemption}=NAV\times(1-r\_R)
$$

Where:

* $$r\_R$$: Redemption Fee Rate