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Precision in Performance Fee Calculations

Updated over a month ago

Overview

In Fund Management(PAMM) and Copy Trading services, when managed funds are small or Performance Fee rates are low, the Performance Fee payable to Signal Providers or Fund Managers may be less than $0.01. This document explains how the system handles the calculation and display of such micro amounts.

Calculation Mechanism

Precise Calculation

  • System uses 0.0001 USD precision for all Performance Fee backend calculations

  • Even when individual profit-sharing amounts are below $0.01, the system accurately records and accumulates them

  • All calculations strictly follow international financial standards

Display Rules

  • Interface displays two decimal places (e.g., $0.00)

  • Actual amounts less than $0.01 display as $0.00

  • Display updates when accumulated amount reaches or exceeds $0.01

Common Scenarios

Scenario 1: Standard Trade Profits

When a Slave Account or investor generates standard profits:

  • Trading Profit: $1.50

  • Performance Fee Rate: 5%

  • Payable Performance Fee: $0.08

  • Displayed Amount: $0.08

Scenario 2: Micro Trade Profits

When micro profits are generated:

  • Trading Profit: $0.15

  • Performance Fee Rate: 5%

  • Payable Performance Fee: $0.008

  • Displayed Amount: $0.00 (system records 0.008 and continues accumulating)

Scenario 3: Multiple Accumulations

When multiple small trades occur:

  • First Trade: $0.006 (displays as $0.00)

  • Second Trade: $0.009 (displays as $0.00)

  • Accumulated Amount: $0.015

  • Updated Display: $0.02

Affected Areas

This precision mechanism affects:

  • Performance Fee amounts in both Fund Management and Copy Trading

  • Cumulative profit sharing

  • Settlement statement amounts

  • Profit statistics

Important Notes

Accounting Accuracy

  • All calculations maintain full precision in the backend

  • Display variances do not affect actual payable amounts

  • System performs cross-validation for accuracy

Settlement Processing

  • System considers all accumulated micro amounts during settlement

  • Displays update when accumulated amounts meet threshold

  • Periodic settlements include all undisplayed accumulated amounts

Transparency Guarantee

  • All calculation processes are fully transparent

  • Detailed reports show precise calculation data

  • Complies with international financial market standards

FAQ

Q: Why does my Performance Fee show $0.00? A: When a single Performance Fee is less than $0.01, it displays as $0.00, but the system continues accumulating until reaching a displayable amount.

Q: Does this affect my actual earnings? A: No. This is purely a display precision issue. Actual amounts are calculated precisely and displayed when accumulation meets the threshold.

Q: How can I view exact calculation amounts? A: You can view complete calculation details, including all micro amount accumulations, in detailed settlement reports.

Additional Information

  • This mechanism follows international financial market practices

  • Ensures Signal Provider and Fund Manager interests are protected

  • Maintains high precision and reliability in system calculations

Note: For specific questions, please submit a ticket through the Service Hub, contact us via Live Chat, or email [email protected].

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