Worked example

Simple numbers, no skipping.

The setup:

You allocate $100,000 to a vault on January 1. Over the year the strategy returns 10%, a $10,000 gain. No drawdowns.

The fees:

Platform fee, 1%. About $1,000 for the year, accrued daily. Covers custody and infrastructure. All of it goes to MakeBanc.

Performance fee, set by the asset manager. Charged on the gain above the high water mark, and crystallized monthly. Each manager sets their own rate; this example uses a hypothetical 20% and 30%. After the 1% platform fee, the net gain is about $9,000, so the performance fee is $1,800 at 20% or $2,700 at 30%. This is the asset manager's fee.

What you end with:

	At a 20% performance fee	At a 30% performance fee
You allocated	$100,000	$100,000
Strategy gain (10%)	+$10,000	+$10,000
Platform fee (1%)	-$1,000	-$1,000
Performance fee	-$1,800	-$2,700
Ending balance	$107,200	$106,300

Your net return is about 7.2% at a 20% performance fee, or 6.3% at 30%. The dashboard shows net-of-fee NAV the whole way through. Redemption returns the net balance to your wallet.

Who gets what:

The 1% platform fee goes to MakeBanc. The performance fee is the asset manager's; when MakeBanc pays it out, it charges a payment processing fee on it, taken from the asset manager's share, never from you.

If the strategy loses money:

Say the strategy is down 5% over the year. The 1% platform fee still accrues. There is no performance fee, because there is no gain above the high water mark. The strategy must climb back above its previous peak before any performance fee is charged again.

What this is not:

These numbers are illustrative. Real strategies don't deliver clean 10% returns with no drawdowns. The point is to show how the mechanics work, not to suggest expected returns.