# Calculating fees

xample:

The user created a private vault with these allocations:

The private fund has a fee of:

Strategy Fee: 0%

Platform Fee: 0.5%

Performance Fee (Book Cost): 2.5%

| Fees               | Strategy A | Strategy B | Strategy C |
| ------------------ | ---------- | ---------- | ---------- |
| Allocation of Fund | 55%        | 30%        | 15%        |
| Strategy Fee:      | 0.5%       | 0.2%       | 1%         |
| Performance Fee    | None       | None       | None       |
| HWM:               | 2.5%       | 0%         | 10%        |

The effective fee for this fund is as follows:

Strategy Fee: 0.5 x 55% + 0.2 x 30% + 1 x 15% = 0.485%

**Each year: 0.485% of the fund will be taken regardless of profits or loss.**

HWM Fee: 2.5 x 55% + 0 x 30% + 10 x 15% = 2.875%

**Each year: 2.875% of the fund can be taken with the assumption that all 3 funds make a profit. This profit would need to be made every HWM period. To learn more about how HWM works, please view** [**here**](https://xwin-technology.gitbook.io/untitled/fees/book-cost-vs-high-water-mark)**. This 2.875% of the fund will be taken throughout the year if the conditions are met.**

**When the user withdraws from the private fund, 2.5% of the profit is subject to fees.**