Fees

Performance Fee

Performance fees apply only on gains above the series' HWM.

The HWM is the price-per-share (PPS) a series must exceed before any performance fee is applied. This prevents managers from charging a performance fee on gains that a restaker has already paid for, or that occurred before their allocation.

Calculation

The fee is calculated on the value of gains that exceed the HWM for a specific series.

Price Per Share = AUM / Total Shares;

if (Price Per Share > HWM) {
  performance fee = (Price Per Share - HWM) * Total Shares * (performanceFeeBps / 10,000);
  // update HWM
}

Management Fee

The Management Fee is a time-based fee calculated on the assets under management (AUM). It is expressed in basis points per year and accrues on a pro-rata basis over time.

Calculation

The fee is calculated and charged based on the duration elapsed since the last fee payment, as a fraction of the total year. This ensures that the fee is fair and reflects the time the assets were managed, regardless of the batch frequency.

Management Fee = AUM * ( managementFeeBps / 10,000) * (elapsedTime / ONE_YEAR)