Strategy creators may choose the option to charge you for licensing their strategies on the profit they generate in your portfolio.
We wanted to ensure subscribers only pay the strategy creator once for the value created.
For this reason, the success fee is calculated based on the incremental high-water mark (HWM) of the portfolio's growth.
Losses on the portfolio must be offset by greater profits before the subscriber pays a success fee.
To illustrate the calculation, we have prepared a short example. It begins with a profit, followed by a loss, a profit not exceeding the previous HWM, and ends with a profit that does exceed the previous HWM.
For completeness sake: In the last month, the profit above the previous HWM is $1.500 - $1.200 = $300. Where $300 * 20% = $60 charge.