Performance fee means that followers pay a certain amount of remuneration to the signal sources they subscribe to. The performance fee is deducted according to a certain percentage from the profit gained by the follower through copying the signal source. If the follower fails to make a profit, the signal source will not charge the follower a performance fee.
a. The highest net worth at the time of profit sharing
Regarding how to calculate the performance fee, it is necessary to first consider the latest net value after each transaction is closed. The performance fee will only be generated when the total profit of the transaction in all previous cycles exceeds the total loss.
b. Calculation formula and example of performance fee
Performance fee = profit * performance fee ratio
Performance fee ratio: 20
Profit sharing cycle: each transaction
Documentary 1: The principal is US$100, and the first order is closed with a profit of US$50, then the performance fee is 50 * 20 = US$10, and the net value of the documentary account at the time of profit sharing is US$150;
Documentary 2: The second order is closed at a loss - 30 USD, and the performance fee is zero, because the net value of the documentary account at this time of profit sharing is 150-30=120 US dollars, which is less than the net value of the previous profit sharing time point $150.
Copy 3: The third order is closed with a profit of 80 US dollars, and the performance fee is 10 US dollars (120+80-150). Since this profit makes the net value of the copy account exceed the net value of the last profit sharing point, it can further Calculate the performance fee: 20 of the $50 profit is $10.