Investors only need to pay a performance fee if they profit from a fund during a billing period.
The performance fee is deducted from the investment profit at the end of the billing period. If an Investor chooses to close an investment early, the performance fee will be deducted when the investment is stopped. The fee will only be paid to the Portfolio Manager (PM) at the end of the billing period.
If the investment results in a loss, the Investor does not pay a performance fee until the investment profits during subsequent billing periods exceed the loss incurred.
Note: When setting up a fund, the PM determines the performance fee rate. This rate can be changed at any time by the PM; if changed, it will only affect new investments after the change. Existing investments will remain with the initial performance fee rate.