Management fee & Carry

Management fee

The management fee is the fee paid by LP to GP for the daily operation of the Fund, which is calculated on an annual basis (365 days) based on the percentage set at the time of the Fund's establishment, with the minimum unit of second.

MF(t_n) = \frac{FTV(now) * MFR}{year\;seconds}*(t_n - t_{n-1})

The management fee can be withdrawn by GP at any time during the operation of the fund. Once the liquidation is triggered by either party, the remaining unwithdrawn management fee will still be calculated and paid to GP.

Carry

Carry is the only way for GP to obtain higher returns. Whenever there is LP triggering redemption operation, a profit calculation will be carried out. If it is profit, carry sharing calculation will be carried out and the share will be made according to the carry proportion.

Economic Model Gas Fee Reimbursement