> For the complete documentation index, see [llms.txt](https://docs.eiva.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.eiva.money/where-the-yield-goes.md).

# Where the yield goes

Each funded invoice earns a fee agreed per invoice, \[6.7% of face value: Alpha] on average so far, taken when the payer settles. The vaults' income is that fee plus what idle USDC earns in \[idle venue: Alpha]. It's applied in this order:

1. Depositors' interest, at the fixed rate for each note
2. The first loss reserve, until it holds 3% of principal outstanding
3. Half to the reserve and half to Eiva, until the reserve holds 10%
4. Above 10%, released to Eiva at the end of each month \[Alpha and solicitor to confirm]

Net fees means income after depositors' interest. Principal outstanding means the principal of every active note, across all vaults.

Over a 27 day planning cycle, the fee on a funded invoice comfortably covers the interest owed on the capital behind it. The difference builds the reserve and then pays Eiva. The memorandum sets out the arithmetic.


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