Fees

When investing in different strategies, you may face various types of fees. Each strategy's detailed page provides information on the exact commission parameters. These fees can include asset management fees, performance fees, activation fees, early withdrawal fees, and other counterparty operating fees. The commissions are calculated on a daily basis to ensure accuracy, and the write-offs are made according to the terms of the strategy, usually on a monthly or quarterly basis, or when funds are withdrawn

Management Fee

This is a commission as a percentage of the value of assets under management (AUM). The commission is calculated on a daily basis based on the annual rate and the current AUM. The daily interest calculation formula:

$$FeeMF = R1 * Aj / Wdfull$$

𝑹𝟏 - the reward rate 𝑾𝒅𝒇𝒖𝒍𝒍 - the number of calendar days in the current calendar year A𝒋 is the total value of the Client's assets, which is calculated on the current calendar day of the reporting period

Performance Fee

This is a commission based on a percentage of the profits above the high water mark (HWM), which is the maximum portfolio value achieved after deducting all fees.

Let’s break down how the performance fee is calculated with the High Water Mark (HWM) method, based on potential scenario:

• Initial investment: $10,000

• Performance fee: 10%

• Fee deduction frequency: Quarterly

How the HWM Principle Works

Quarter 1. The portfolio grows from $10,000 to $12,000. Profit: $2,000. Performance fee: $2,000 × 10% = $200. HWM is set to $12,000

Quarter 2. The portfolio drops to $11,000, which is below the HWM of $12,000. No performance fee is charged

Quarter 3. The portfolio rises to $11,500, still below the HWM ($12,000). No performance fee is charged

Quarter 4. The portfolio increases to $13,000, surpassing the previous HWM. Profit over HWM: $13,000 - $12,000 = $1,000. Performance fee: $1,000 × 10% = $100. New HWM is set to $13,000

Early Withdrawal Fee

In some strategies, a fee may be charged if you withdraw funds before the set period of time. The formula for calculating this fee is:

$$FeeEARLY = Sum to withdraw × r(t)$$

r(t) represents the rate that depends on the period of time you are withdrawing funds after the initial deposit. For example, if you deposit funds and then withdraw them within 183 days, the rate would be 2%. If you wait 365 days, it would be 1%. After 730 days, there would be no fee.

Activation Fee

This is the commission for activating the strategy. It can be a fixed amount or a percentage based on the size of the deposit, and it may be debited at the time of the first deposit or with each subsequent deposit

Other counterparty fees

1. When converting USDT ot USDC into fiat and back, as well as when making transactions through banks, brokers, exchanges, and on the blockchain, certain fees are charged. These include counterparty fees, which may also include gas fees

2. These fees are determined by third-party entities and cannot be accurately predicted in advance. They are deducted by these entities, not us. We aim to minimize these fees and choose the most efficient paths for transactions

When investing, all strategies have a 7-day lock-up period during which withdrawals are not possible. During this time, commissions are accrued according to the rules of the strategy