Vault rewards and fees

Last updated: Jan 26, 2026

Vaults on Krak allow you to earn variable rewards by depositing assets into decentralized finance (DeFi) lending markets.

Rewards

When you deposit into a Vault, your funds are supplied to DeFi lending protocols that utilize smart contracts. These protocols provide on-chain rewards when borrowers use the liquidity supplied by the Vault. That interest is the Vault’s rewards.

 

Rewards are:

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    Continuous: Your balance grows automatically as rewards accrue.

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    Variable: APYs can change based on onchain activity & market conditions.

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    Compounded: Rewards are automatically added to your balance as you earn them.

All rewards are paid in USDC and reflected in your Vault in real time.

The Annual Percentage Yield (APY) shown on Krak represents an estimate of your potential yearly return, assuming the rate remains constant. Because DeFi markets are dynamic, your APY can change at any time.

Factors that affect your APY include:

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    Supply and demand: When more clients lend into the same protocol, rates tend to fall, when demand to borrow rises, rates increase.

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    Strategy risk level: Conservative Vaults usually target lower, steadier returns. Aggressive Vaults seek higher yields but may experience more market volatility.

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    Underlying protocol performance: The health of the lending markets (for example, Aave) influences how much yield is available.

Displayed APYs are estimates, not guarantees, and are based on current on-chain data provided by independent protocol providers.

Your rewards are automatically added to your deposited Vault balances, which will update as the Vault earns interest.

Fees

There are two types of possible fees when using Vaults:

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    A percentage of the vault’s earnings are taken as a fee. This fee is taken from the vault automatically and before earnings are shown in your balance. There are no fees when you withdraw.

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    If you choose an asset besides USDC, Kraken will apply the standard fee to convert to USDC before depositing into a vault. You will have the chance to review the fee before confirming your deposit.

Note:

There are no withdrawal fees.

Rewards are variable and not guaranteed; you can lose some or all of your assets. Interacting with on-chain smart contracts involves risks which are further detailed in the terms of service, including technological risk (bugs, exploits, and oracle/MEV/bridge failures), market risk (price volatility, de-pegs, and liquidation where relevant), and operational risk (irreversible transactions, gas fees, network congestion). Kraken does not control third-party protocols. Offered by Payward Wallet, LLC. Fees apply. Availability varies by jurisdiction.

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