The billing period is a time period of one calendar month, within which the performance of an investment is measured. At the end of the billing period, a performance fee is calculated and paid out based on the investment’s performance over that billing period. How this calculation is made depends on the type of Portfolio Management Solution.
The calendar month of the billing period ends on the last Friday of the month (23:50 UTC+0 to 23:59:59 UTC +0) with a new billing period beginning immediately after.
Billing period calculation for investments in a strategy
- All orders on the investment are closed.
- If investments saw an overall profit: a performance fee is deducted and the copy ratio is recalculated.
- If investments saw an overall loss: no performance fee is calculated and the copy ratio remains the same.
- All orders that were closed in step 1 are reopened with zero spread and the copy ratio is recalculated.
- The active orders of the Strategy Provider remain open throughout this process.
Billing period calculation for investments in a fund
- Orders are not closed.
- If investments saw an overall profit, and the profit exceeds the profit threshold, then a performance fee is deducted.
For more information, we recommend that you read about the performance fee.