Knox Finance earns revenue by taking a performance fee when the vault is profitable.
At the end of each epoch if the vault has a positive net income, a 15% performance fee is taken. The net income is calculated by comparing the total assets held by the vault at the start of the auction, with the adjusted total assets at the end of the epoch. The adjusted total assets account for assets withdrawn from the vault during the epoch. If the adjusted total assets are greater than total assets before the auction, the net income is set to the total premium, otherwise, the difference is deducted from the total premium.
netIncome = totalPremium - (lastTotalAssets - adjustedTotalAssets)
Last modified 3mo ago