Management fee

Set up the management fee calculation settings

The management fee can be calculated as one of the following:

• The annual percentage of the subscribed investment account’s balance or equity at the moment of fee payment, which is paid periodically (daily, weekly, or monthly):

Management fee = Fee%/100 * Number of active days/Year * Account balance (or equity)

• The percentage of the subscribed investment account’s balance or equity at the moment of fee payment, which is calculated for a selected period (daily, monthly, or weekly):

Management fee = Fee%/100 * Number of active days/Period * Account balance (or equity)

In the settings described below, you can select if you want to use balance or equity for the calculations (refer to the instruction below).

In the formulas:

• Fee% is the management fee percentage specified in a fee plan.

• Number of active days is the number of days an investor has been subscribed to a master account or the number of days passed since the last payment.

• Year is always considered to be 365 days for calculation purposes.

• Period is the payment period specified in the fee plan. Possible values:

  • Daily – the fee is charged every day. The period duration is 1 day.

  • Weekly – the fee is charged every Monday. The period duration is 7 days.

  • Monthly – the fee is charged on the first day of each month. For calculation purposes, the period duration is always considered to be 30 days.

• Account balance (or equity) is the subscribed investment account’s balance or equity at the moment of fee payment.

1

In the Settings > Fees menu, set up the following settings for the management fee:

Management fee calculation settings

In the Calculation Formula dropdown, select one of the options:

• Based on Equity – uses the equity value of a subscribed investment account for calculations

• ‍Based on Balance – uses the balance value of a subscribed investment account for calculations

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In the Period for percentage calculation dropdown, select one of the options:

• % / year – calculates the management fee as the annual percentage

• % / period – calculates the management fee as the percentage for a selected period

2

Click Save to apply the changes.

Example 1

Suppose that the management fee is configured to be calculated as the annual percentage, based on the subscribed investment accounts’ balances:

Management fee = Fee%/100 * Number of active days/Year * Account balance

In the fee plan for a master account, the management fee is set to 15 percent annually, which must be paid daily. An investor subscribed to the master account on April, 15. The next daily management fee is charged on April, 16.

Suppose that the investment account’s balance is 3000 USD at the moment of fee payment on April, 16. In this case, the management fee amount is calculated as follows:

Fee% = 0.15 Number of active days = 1 day Year = 365 days Account balance = 3000 USD 0.15 * 1/365 * 3000 = 1.23 USD

Example 2

Suppose that the management fee is configured to be calculated as the percentage for a selected period, based on the subscribed investment accounts’ balances:

Management fee = Fee%/100 * Number of active days/Period * Account balance

In the fee plan for a master account, the management fee is set to 2% monthly. An investor subscribed to the master account on April, 15. The next monthly management fee is charged on May, 1.

Suppose that the investment account’s balance is 3000 USD at the moment of fee payment on May, 1. In this case, the management fee amount is calculated as follows:

Fee% = 0.02 Number of active days = 30 - 15 = 15 days Period = 30 days Account balance = 3000 USD 0.02 * 15/30 * 3000 = 30 USD