> For the complete documentation index, see [llms.txt](https://docs.nav.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nav.finance/nav-economy/nav-sip-fees.md).

# NAV SIP Fees

NAV ensures transparency and fairness in our Structured Investment Products (SIPs) to align incentives and support sustainable growth.

### SIP Profit Distribution

Our profit distribution model adapts to SIP performance:

* **70% to Investors**: Majority of profits go to investors.
* **30% to NAV Management**: As performance fee and to support the $NAV ecosystem

Example: If the Directional SIP achieves a 100% APR:

* **Investors receive 70% APR**.
* **NAV Management receives 30% APR**.

### SIP Protocol Fees

<figure><img src="/files/iZGTJfUw6sArSlGfJKD0" alt=""><figcaption></figcaption></figure>

To ensure sustainability and growth, we incorporate two key fees:

* **Withdrawal Fee**:
  * Less than 3 months: 1%
  * Less than 6 months: 0.5%
  * Less than 12 months: 0.25%
  * Over 12 months: None
* **Management Fee**:
  * Annual fee of 2% of SIP’s Assets Under Management (AUM), split monthly at 0.16666%.

These fees cover analysis, compliance, auditing, and strategic development, ensuring our SIPs remain competitive.