The five fees
What “high-water mark” means
The performance fee only applies when the fund reaches a new peak share price. The fund tracks a high-water mark (HWM) — the highest price at which a performance fee has been charged. If the price rises above the HWM, the fee is charged on the gain and the HWM ratchets up to the new price. If the price is flat or below the HWM, no performance fee is charged. This means you’re never charged a performance fee twice for recovering the same ground after a drawdown.The fee base asset
Management, performance, and protocol fees are time- and price-based, so they need a reference price. Each fund designates a fee base asset, and these three fees accrue against that asset’s reported price. That’s why the fund always includes the fee base asset in every settlement’s price set.Where the protocol fee goes
The protocol fee is separate from the fund’s own fees. Its recipient isn’t stored on the fund — it’s resolved live from the protocol root (FundManagerDeployer) at accrual time. This lets a protocol-wide change take effect across all funds by flipping one pointer. If the protocol fee recipient is unset (zero), the protocol fee is simply skipped.What this means for you
- Entry and exit fees are one-time, applied at settlement of the relevant batch.
- Management and protocol fees accrue continuously with time, realized at each report acceptance — so a longer holding period means more of these fees.
- Performance fees only bite when the fund makes new highs.
- Because all fees are paid by minting shares, your share count doesn’t drop, but your proportional ownership of the fund gradually decreases as fees accrue. Each fund publishes its exact fee schedule; check it before depositing.