Each validator node on Solana gets to decide what percentage of rewards get held as compensation for operating the validator. Most people tend to agree that 10% or less is reasonable. Validator performance is magnitudes more important than fee when it comes to overall APY. Hosting a well equipped validator can cost over $1000 a month in some cases.
Skip rate refers to how frequently a validator fails to do it's job of processing transactions on the network. The lower the skip rate, the better. This validator has a high skip rate, which results in lower earnings and poor overall performance. Consider staking with another validator.