Fees - Red Potion

A fund can charge up to five fees. Every fee is paid in newly minted shares, not by taking your assets. The FeeManager holds config. Rates are in basis points (10,000 bps = 100%).

Fee table

Fee	When	Calculation	Paid to
Entry fee	Deposit batch settles	`totalShares × entryFeeBps / 10000` withheld from shares you would receive	Fund fee recipient
Exit fee	Redeem batch settles	`redeemShares × exitFeeBps / 10000`; payout uses net shares	Fund fee recipient
Management fee	Each accepted report (time-based)	`totalSupply × managementFeeBps × elapsed / (10000 × 365 days)`	Fund fee recipient
Performance fee	Each accepted report, only above high-water mark	`totalSupply × (price − HWM) × performanceFeeBps / (price × 10000)`	Fund fee recipient
Protocol fee	Each accepted report (time-based)	Same shape as management fee at `protocolFeeBps`	Protocol fee recipient

High-water mark

Performance fee applies only when share price hits a new peak. The high-water mark (HWM) is the highest price at which a performance fee was charged. Gain above HWM is fee-eligible; HWM then ratchets to the new price. Flat or below HWM → no performance fee. You are not charged again for recovering the same ground after a drawdown.

Fee base asset

Management, performance, and protocol fees need a reference price. The fund’s fee base asset supplies that price. Settlement always includes the fee base asset in the price set.

Protocol fee recipient

Protocol fee recipient is not stored on the fund. It resolves live from FundManagerDeployer at accrual. One pointer change applies protocol-wide. If the recipient is zero, protocol fee is skipped.

Investor effects

Entry and exit fees apply once, at the relevant batch settlement.
Management and protocol fees accrue with time, realized on each report acceptance.
Performance fees apply only on new highs.
Share count does not drop from fees; ownership fraction shrinks as fee shares mint. Check each fund’s published schedule before depositing.