**Fee Wrapper details**
#### Yield and Rewards **Native Yield (Inside ERC-4626 Flow)** Native yield comes from interest paid by borrowers on underlying Morpho Markets. It accrues automatically to shares over time, requiring no separate claim, shares simply appreciate in value. Users withdraw the same token they deposited (e.g., USDC) plus accrued interest. Performance and management fees are applied to this yield. **External Rewards (Outside ERC-4626 Flow)** External rewards (e.g., MORPHO tokens) come from incentives provided by Morpho governance, market creators, or token issuers, and are distributed via Merkl (updated every 8 hours). These rewards require a separate claim action through Merkl and are automatically forwarded to end depositors by default. It is possible to implement custom distribution, for this specific reward routing (e.g., distributor claims rewards instead of users), coordinate with the Merkl team for address remapping configuration. #### Integration Guide Exact calls and formulas so partners can integrate the same post-fee APY logic directly. **1) Onchain reads** ``` feeWrapper.adapters(0) → adapter address adapter.morphoVaultV1() → underlying Morpho vault address (Vault V2) feeWrapper.performanceFee() → wrapper perf fee (WAD) feeWrapper.managementFee() → wrapper mgmt fee per second (WAD) ``` > The on-chain `managementFee()` returns a **per-second** rate. Multiply by `365 × 24 × 3600` to get the annual rate. The API `managementFee` field is already annualized. **2) Morpho API call** Endpoint: `POST https://api.morpho.org/graphql` Supported chain IDs on the Morpho API are available [here](/tools/offchain/api/get-started/#supported-networks). ```graphql query FeeWrapperAPY($underlyingVault: String!, $chainId: Int!) { underlying: vaultV2ByAddress(address: $underlyingVault, chainId: $chainId) { avgApy performanceFee managementFee rewards { asset { address, symbol } supplyApr } } } ``` with variables: ```graphql { "underlyingVault": "underlyingVault_address", "chainId": 1 } ``` | Field | Description | | --------------------- | ----------------------------------------------------------------------------------------- | | `avgApy` | Realized average APY from share price, **before** the vault's own fees, excluding rewards. We use `avgApy` instead of `avgNetApy` because `avgNetApy` is already net of the underlying vault's fees and includes rewards, which makes the two-layer fee math confusing | | `performanceFee` | Fraction (e.g., 0.10 for 10%) | | `managementFee` | Annual fraction (e.g., 0.02 for 2%) | | `rewards[].supplyApr` | Individual external reward APRs | **3) APY computation** ``` adapterYield = avgApy × (1 − underlyingPerfFee) − underlyingMgmtFee wrapperPerfFeeDeduction = max(adapterYield, 0) × wrapperPerfFee nativeYield = adapterYield − wrapperPerfFeeDeduction − wrapperMgmtFee rewardsApr = sum(rewards[].supplyApr) netApy = nativeYield + rewardsApr // when rewards pass through to depositors ``` > If rewards are redirected via Merkl address remapping, omit `rewardsApr` from the final sum (end users do not receive them). #### Deployment The simplest deployment method uses the FeeWrapperDeployer periphery contract: - [FeeWrapperDeployer source code](https://github.com/morpho-org/vault-v2/blob/main/src/periphery/FeeWrapperDeployer.sol) - [Fee Wrapper Demo App](https://fee-wrapper-demo.vercel.app/) - Educational tool to help with deployment Find the factory addresses in [addresses section](/get-started/resources/addresses/). #### Security Considerations **What the Owner CAN Do:** - Change performance fees (up to 50%, timelocked) - Change management fees (up to 5%, timelocked) - Change fee recipients (timelocked) - Add/remove allocators (timelocked) **What the Owner CANNOT Do:** - Change the underlying vault (abdicated) - Add new adapters (abdicated) - Remove the existing adapter (abdicated) - Access user funds directly - Prevent users from exiting (via forceDeallocate)
{/* Vault Header */}
{/* APY Display */}
{/* Rewards List */}
{data.rewards.length > 0 && (
);
}
```
**File: `src/components/UserRewardsPanel.tsx`**
```tsx
export function UserRewardsPanel({ userAddress, chainId }) {
const [rewards, setRewards] = useState(null);
const [claiming, setClaiming] = useState(false);
useEffect(() => {
getUserRewards(userAddress, chainId).then(setRewards);
}, [userAddress, chainId]);
const handleClaimAll = async () => {
setClaiming(true);
try {
// Claim from both systems
await Promise.all([
claimMerklRewards(userAddress, chainId, walletClient),
claimURDRewards(userAddress, walletClient),
]);
alert("Rewards claimed successfully!");
// Refresh rewards data
getUserRewards(userAddress, chainId).then(setRewards);
} catch (error) {
console.error("Claim failed:", error);
alert("Claim failed. See console for details.");
} finally {
setClaiming(false);
}
};
return (
{data.vault.name}
{data.vault.symbol}
Total APY
{data.totalApy.toFixed(2)}%
Base APY: {data.baseApy.toFixed(2)}%
{data.rewardsApr > 0 && (
Rewards: +{data.rewardsApr.toFixed(2)}%
)}
Your Claimable Rewards
{rewards?.combined.map((reward) => (
{reward.token}
{formatAmount(reward.amount)} {reward.token}
))}
{/* Show source breakdown */}
View breakdown
Merkl: {rewards?.merkl.length || 0} rewards
URD: {rewards?.urd.length || 0} rewards
Loading...
;
if (!data) return No data
;
return (
{data.vault}
Deposit {data.asset}
{/* Total APY */}Total APY: {data.totalApy.toFixed(2)}%
Base APY: {data.baseApy.toFixed(2)}%
Rewards APR: +{data.rewardsApr.toFixed(2)}%
Reward Programs:
{data.rewards.map((reward) => (
{reward.token}
{reward.apr.toFixed(2)}% APR
))}
Total APY
{totalApy.toFixed(2)}%
```
**Show Breakdown on Hover/Click:**
```tsx
Base APY: {baseApy}%
MORPHO Rewards: +{morphoApr}%
Partner Rewards: +{partnerApr}%
}>
{totalApy}%
Loading rewards...
;
if (!rewards || rewards.total.length === 0) {
return No claimable rewards
;
}
return (
Your Claimable Rewards
{rewards.total.map((reward) => (
{reward.symbol}
{formatUnits(reward.amount, 18)} {reward.symbol}
))}
{/* Show separate counts for transparency */}
Merkl: {rewards.merkl.length} rewards • URD: {rewards.urd.length} rewards
{/* Claim button */}
| Vault | Your Deposit | Base APY | Rewards APR | Total APY | Claimable |
|---|---|---|---|---|---|
| {vault.name} | {vault.userDeposit} {vault.asset.symbol} | {vault.baseApy.toFixed(2)}% | +{vault.rewardsApr.toFixed(2)}% | {vault.totalApy.toFixed(2)}% | {vault.claimable > 0 ? ( ) : ( — )} |
Active Reward Programs
{programs.map((program) => (APR: {program.apr.toFixed(2)}%
Ends: {formatDate(program.endDate)}
Source: {program.isMerkl ? "Merkl" : "Morpho URD"}
Accruing:
{accrued.toFixed(6)} MORPHO
);
}
```
## Handling Edge Cases
### No Rewards Available
```tsx
{rewards.length === 0 ? (
No active reward programs for this vault
Check back later or explore other vaults
Unable to load rewards data