> ## Documentation Index
> Fetch the complete documentation index at: https://docs.berachain.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Yield & Fees

> How vault yield is generated from lending markets and how fees are applied; share price and depositor interest.

Understanding how vault yield is generated and how fees are applied helps you build accurate earn products and set clear user expectations.

## Yield generation

Bend vaults earn yield by supplying capital to lending markets on Berachain.

### Yield sources

1. **Borrower interest**: Borrowers in underlying markets pay interest.
2. **Market distribution**: Interest is distributed to lenders in each market by supplied share.
3. **Vault collection**: Vaults collect interest as lenders across multiple markets.
4. **Share price increase**: Total vault assets grow, so share price rises.
5. **Depositor interest**: You earn the interest paid by borrowers as your share value increases.

## Fee mechanism

Bend vaults charge **performance fees** and **platform fees**. Both are taken as a share of the native lending yield.

<Note>Yield from Proof-of-Liquidity \$BGT is not subject to any fee.</Note>

### Platform fee

Charged at the market level and retained by the Berachain Foundation.

### Performance fee

Charged at the vault level and split between the foundation (0%)\_ and the curator (100%)\_.

> \*Values are subject to change.