# Performance fee **Perfomance fee: 20% on the farming yields auto-compounded** When you deposit yield-bearing tokens (i.e LP tokens) as collaterals on Palm platform, your deposited assets continue farming and earning yields, the Palm platform realizes auto-collecting and compounding for you. 20% Perfomance fee will be charged based on the yields earned and auto-compounded. Palm Finance takes this small cut of rewards but even after that, the leveraged farming strategies will offer yields superior to anything out there today. > Auto-compounding means we sell the faming yield tokens and transfer them into the underlying asset. So for example, when you deposit Trader Joe LP tokens into Pal, Finance, we deposit them into the Trader Joe Master Chef contract to earn JOE yield. We periodically claim the JOE rewards and sell it for more JLP tokens. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://palm-finance.gitbook.io/homepage/using-palm-finance/fees/performance-fee.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.