Gas fees

Gas fees description.

To ensure transparency regarding the costs associated with the fija ecosystem, it is important to distinguish between user-initiated transactions and the automated management of the underlying strategies.

User-Level Transactions

Standard blockchain interactions, such as depositing assets into a vault or withdrawing funds, incur network transaction costs known as "gas fees". These fees are paid directly from the user's connected wallet at the time of execution.

Strategy Management and Maintenance

A benefit of the vault infrastructure is the automation of yield-generating activities. To maintain the performance of a strategy, the following actions are handled by fija:

• Harvesting: The process of collecting earned rewards from underlying DeFi protocols.

• Rebalancing: Adjusting asset allocations within a strategy to maintain the target risk-reward profile or to optimize for changing market yields.

• Emergency Mode: In case of emergency (e.g., unexpected activities like a depeg) or if a strategy is discontinued, the strategy is set to “emergency mode”. During it, all funds are retrieved from the DeFi protocols and remain stored in the strategy contract in the deposit currency. The holder of the fija token can then retrieve their funds directly through the vault.

The gas fees associated with these background operations are covered by fija, ensuring that the day-to-day management of the strategy does not require manual intervention or additional costs from the individual investor.