LP education · growing your fees
“Should I put my fees back in, and how much extra does compounding really make?” A little at first, more with time.
The short version
Same $1,000, an illustrative 20% a year in fees: putting them back in monthly adds $13.89 in year one.
Illustrative, not a promise. The 15% comes from collected fees, never your deposit.
1 · The picture
Paid-out fees pile up in a straight line. Fees put back in earn fees of their own.
| Month | Put back in | Paid out |
|---|---|---|
| 0 | $1,000.00 | $1,000.00 |
| 3 | $1,043.10 | $1,042.50 |
| 6 | $1,088.07 | $1,085.00 |
| 9 | $1,134.97 | $1,127.50 |
| 12 | $1,183.89 | $1,170.00 |
Paid out: $1,000 × 17% = $170.00 a year. Put back in: each month × (1 + 0.17 ÷ 12).
2 · How often
Quarterly adds $11.15 in a year, monthly $13.89, daily $15.26. Even nonstop compounding tops out at $15.30.
| How often | Per year | After a year | Extra |
|---|---|---|---|
| Quarterly | 4 | $1,181.15 | +$11.15 |
| Monthly | 12 | $1,183.89 | +$13.89 |
| Weekly | 52 | $1,184.98 | +$14.98 |
| Daily | 365 | $1,185.26 | +$15.26 |
| Nonstop (ceiling) | ∞ | $1,185.30 | +$15.30 |
3 · The key variable
In one year, compounding adds $0.84 at a 5% rate, $13.89 at 20% and $93.38 at 50%. Bigger rates snowball faster.
| Rate before | After the 15% | Extra in a year |
|---|---|---|
| 5% | 4.25% | +$0.84 |
| 20% | 17.00% | +$13.89 |
| 50% | 42.50% | +$93.38 |
| 60% | 51.00% | +$137.83 |
4 · Time
Same example, left working for years. The extra snowballs, if the rate and prices hold, and they won't exactly.
steady-rate assumption · illustrative, not a promise
5 · Your fee setting
The default fee setting, Half in, half out, adds +$3.35 in year one on the $1,000 example. Only the token your new range holds can go back in, so even “all” is about half your fees. How the fee setting works → Configuration
Extra in year one by fee setting · $1,000, illustrative 20%, monthly snuggles
Auto-compound all adds $6.78, Half in, half out adds $3.35, Send to wallet adds $0.00. Putting every fee back in would add $13.89.
Assumes fees split evenly between the tokens. The 15% is taken once. Between snuggles, only a Compound press puts fees back. Illustrative, not a promise.
6 · Try it
Pick a rate, how much goes back and how often. See the extra.
Gas for your own Compound presses isn't counted.
Honest limits
Where fees fit in your result: Up or down? Your result in three parts.
What to do with this
Compounding is a slow helper. Your fees and time do the heavy lifting.
Small position? Skip extra Compound presses: gas can eat the extra. Then give it time.
Pick your fee setting → ConfigurationEducational content, not financial advice. Providing liquidity can lose money; nothing here promises returns.