The fee schedule, in plain numbers.
Two fees, both locked at the published rate. 1% per annum on AUM + 10% on net gains above each account's high-water mark — the same figures the live PnL, the FAQ, and the whitepaper PDF publish. No tiered schedule, no incentive override, and no allocation-size discount: every allocator settles on the same byte-for-byte arithmetic.
On this page
- Management fee — 1% per annum on AUM, accruing daily.
- Performance fee — 10% on net gains above the $20,000 per-account high-water mark.
- What the fees do and don't cover — custody, audit, and attestation sit separately.
- Worked examples for a sample $5M and a sample $50M allocation.
1% AUM p.a. · 10% performance above HWM · one transparent schedule.
Schedule at a glance
Two fees, one schedule.
Everything an allocator pays, summarised in a single line — the same rate every account settles on.
Schedule card
Every figure is sourced from the same static figures /pnl, /faq, and the whitepaper PDF publish — so an allocator can re-derive each line byte-for-byte.
Management fee
1% per annum on AUM.
The management fee accrues every day against the published NAV and crystallises once per calendar month in the 16:00 UTC reconciliation cycle. There is no tiered rate and no allocation-size breakpoint — every account settles on the same published rate.
Formula
How the rate applies
Performance fee + HWM
10% on net gains above a per-account high-water mark.
The performance fee attaches only to the slice of NAV that exceeds the per-account high-water mark — so an account earns back its drawdown before any new perf fee crystallises. The HWM starts at $20,000 per account and ratchets up only when NAV closes above the prior mark.
Formula
HWM baseline
Worked I/O walk-through
What these fees cover · and what they don't
Where the fees stop and the custody, audit, and attestation begin.
The 1% AUM and the 10% performance fee finance the desk's research, signal catalogue, position-sizing framework, trade execution, PnL tracking, and the daily risk-pass / reconciliation machinery. They do not cover any of the cost of operating the qualified custodian, the independent auditor's attestations, or the Segregated Account / Bankruptcy-remote structures — those sit separately with the counterparty that runs them.
Covered by the desk fees
- Trade execution across the four strategy sleeves and the published twice-daily rebalance window.
- Live PnL tracking, daily memo, signed PnL manifest, and the trailing-window risk-pass machinery.
- Research memo catalogue — one published memo per UTC morning — and signal maintenance.
- Independent PnL verification harness (allocators can re-derive any daily bps from the published manifest).
Sit separately (not funded by these fees)
- Qualified custodian fee — charged on Segregated Account balances by the custodian directly. See /custody for the published structure.
- Independent auditor fee — paid by Counterfoil directly upstream of the desk fee schedule; allocators do not carry it.
- Proof-of-Reserves attestation — covered once per day at 06:00 UTC; published alongside the qualified custodian's attestation.
- On-chain gas, oracle fees, and venue margin — paid from the operating wallet, not the desk fee schedule.
Worked examples
Two sample allocations — $5M and $50M — for one illustrative year.
All figures are illustrative: each row assumes a calendar year of trading at the published fee rates, with the perf fee computed off a 25% net annual return — the same illustrative assumption the methodology and the live PnL ledger publish as an example, not a forecast. The columns are sourced from src/lib/business/fees so an allocator can re-derive every cell from the formula above.
Illustrative input (assumption, not forecast)
Each allocation below assumes a 25% net annual return over a 365-day calendar year and a per-account high-water mark held to the published $20,000 baseline. Replace any one input to re-derive the cell.
$5,000,000 allocation · one illustrative year
| Item | Fee · USD | Sourced from |
|---|---|---|
| Avg NAV (illustrative) | $5,625,000 | Avg of start NAV ($5,000,000) and end NAV (assumed 25% net return). |
| End NAV (25% return) | $6,250,000 | Allocation × (1 + 25% net return) — assumption, not forecast. |
| HWM baseline | $20,000 | Per-account high-water mark baseline ($20,000). |
| Management fee | $56,250 | 1% × Avg NAV × (365 ÷ 365) = $56,250. |
| Performance fee | $623,000 | max(0, NAVtoday − HWM) × 10% = $623,000. |
| Total fees | $679,250 | Management + performance over the same period. |
$50,000,000 allocation · one illustrative year
| Item | Fee · USD | Sourced from |
|---|---|---|
| Avg NAV (illustrative) | $56,250,000 | Avg of start NAV ($50,000,000) and end NAV (assumed 25% net return). |
| End NAV (25% return) | $62,500,000 | Allocation × (1 + 25% net return) — assumption, not forecast. |
| HWM baseline | $20,000 | Per-account high-water mark baseline ($20,000). |
| Management fee | $562,500 | 1% × Avg NAV × (365 ÷ 365) = $562,500. |
| Performance fee | $6,248,000 | max(0, NAVtoday − HWM) × 10% = $6,248,000. |
| Total fees | $6,810,500 | Management + performance over the same period. |
Mgmt on $5M: $$50,000 · Perf on $5M: $$623,000 · Mgmt on $50M: $$500,000 · Perf on $50M: $$6,248,000
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The allocator brief bundles the most recent signed daily PnL manifest, the methodology note, the risk policy, and the fee schedule — sent before any pitch conversation.