Performance Fee

We believe all the good trading skills and best performance manager deserve a reward for managing the fund. xWIN Finance brings this traditional feature and automate it as xWIN performance fee in the protocol. The performance fee is calculated based on each wallet’s average entry price and is only charged when funds are withdrawn. For investors, xWIN Finance also integrated a new feature to allow individual investors to enjoy up to 50% discount on their performance fee.

Performance fee is based on individual average cost for the fund and the time of the exit from the fund. As in traditional fund management industry, 2/20 as a standard for the active fund. 2% as annual fund management fee, while 20% is the performance fee charge on the profit gain from the fund.

	Current unit price: $2.0 per unit
Performance Fee = 20%	Users average cost: $1.5 per unit	Users Invested: $1,000,000

Performance fee charges when withdrawal = (2.0 – 1.5) * 1mm * 20%

High Watermark Performance Fee

The High Watermark Performance Fee applies to strategy tokens only. Performance is measured based on the last high water mark price. If the most recent High Water Mark price is 1.50 and the moment the Performance Fee is processed is 2.00, then 0.50 is charged as performance and paid to treasurry. The most recent HWM price is then shown as 2.00. The fund is not subject to the HWM Performance Fee unless the next price is greater than 2.00.

How to enjoy the performance fee discount?

Investors can lock their xWIN tokens in our Auto Compound Lock protocol. In addition to earning high APR from the usual farming pool, investor:

1. Get extra bonus APR based on the locking period that range from 1 to 52 weeks

2. Enjoy the compound effect from their xWIN token staking

3. Get a performance fee discount on all the public and private vaults in xWIN Finance up to 50% discount.