# Fee Settlement

## Settlement

### Management and Performance Fees

{% @mermaid/diagram content="sequenceDiagram
participant VH as ValuationHandler
participant FH as FeeHandler
participant MFT as ManagementFeeTracker
participant PFT as PerformanceFeeTracker

```
Note over VH,FH: During share value update
VH->>FH: settle dynamic fees
FH->>MFT: settle management fee
MFT-->>FH: value owed
FH->>FH: increase value owed: management fee recipient
FH->>PFT: settle performance fee
PFT-->>FH: value owed
FH->>FH: increase value owed: performance fee recipient" %}
```

### Entrance Fee

{% @mermaid/diagram content="sequenceDiagram
participant DH as DepositHandler
participant FH as FeeHandler

```
Note over DH,FH: During deposit
DH->>FH: settle entrance fee
FH-->>FH: value owed = deposit value * entrance fee %
FH->>FH: increase value owed: entrance fee recipient" %}
```

### Exit Fee

{% @mermaid/diagram content="sequenceDiagram
participant RH as RedeemHandler
participant FH as FeeHandler

```
Note over RH,FH: During redeem
RH->>FH: settle exit fee
FH-->>FH: value owed = redeem value * exit fee %
FH->>FH: increase value owed: exit fee recipient" %}
```

## Distribution

{% @mermaid/diagram content="sequenceDiagram
actor Admin as Admin
participant FH as FeeHandler
participant VH as ValuationHandler
participant S as Shares
participant FR as Fee Recipient

```
Admin->>FH: distribute:<br/>- $value <br/>- $feeRecipient
FH->>FH: decrease value owed to $feeRecipient
FH->>VH: convert: $value <br/>to fee asset amount
VH-->>VH: fee asset rate
VH-->>FH: fee asset amount
FH->>S: withdraw fee asset amount to $feeRecipient
S->>FR: transfer fee asset tokens" %}
```