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What are the Fees Associated with investing in XBTO Funds?

Here's an overview of the fees charged for both the management and performance of our funds.

1. Performance Fee

The performance fee is based on the profits generated by the fund. This fee is charged quarterly and is 20% or 10% (depending on the fund) of the positive performance (PNL), subject to high-water mark. Here’s how it works:

  • Fee Rate: 10%–20% of the positive performance.
  • When it’s Deducted? 

    Performance fees are crystallised and deducted quarterly, but only if the fund generates a positive return.
  • Performance fees are payable to the fund administrator after a successful quarter if the PNL is positive.

2. Management Fee

The management fee is an annualised fee, charged monthly and deducted from the fund on the first day of each month. Below is the fee breakdown for different fund strategies:

  • Fee Rate: 
    • Diamond Hand ETH & BTC: 1% annually 
    • Trend & Original: 2% annually 

Example scenario of a Diamond Hand BTC subscription:

If you subscribe $100,000 worth of BTC to our BTC Diamond Hand Fund:

  1. The annual fee will be 1% of the total amount, deducted monthly starting from your subscription date.
  2. In the subsequent month, if the fund earns a 20% return, your investment grows to $120,000. A performance fee of 10% will apply to the $20,000 PNL, which equals $2,000.
  3. Performance fees are calculated monthly but are deducted quarterly. This ensures that any underperformance in subsequent months can adjust or reverse the fee.
  4. Management fees are deducted monthly from your balance, while performance fees are crystallized and realized quarterly as part of our coverage strategy.