Investors only pay performance fees when their funds generate profit during a billing period.
The performance fee is deducted from investment profits at the end of each billing period. If an investor decides to close their investment early, the performance fee will be deducted at that time. However, the Fund Manager only receives this fee at the end of the billing period.
If an investment experiences a loss, no performance fee is charged until future profits exceed the previous loss.
Note: When creating a fund, the Fund Manager sets the performance fee rate. While this rate can be changed at any time, any changes only affect new investments. Existing investments maintain their original fee structure.