Fees from your perspective

What you actually pay.

The fees you pay:

Three figures. Nothing else.

Platform fee, 1% per year. Calculated on the value of your allocation, accrued daily, deducted through vault mechanics. It covers institutional custody and the MakeBanc infrastructure.

Insurance fee, 1% per year. Also accrued daily into NAV. A 100% pass-through of the cost of insuring MakeBanc's technology-risk exposure (coverage from Breach, currently in progress, not yet in force); MakeBanc keeps none of it.

Performance fee, 30% of gains above the high water mark. Crystallises monthly depending on the strategy. This is the asset manager's fee. You pay one number.

No allocation fee. No redemption fee. No conversion spread from MakeBanc (Noah's fiat-to-stablecoin conversion has its own small spread, disclosed at the time).

How the recurring fees accrue:

Not charged in a lump sum. They accrue continuously, expressed in NAV.

Each day, NAV is calculated after subtracting the prorated daily share of the 1% platform fee and the 1% insurance fee. The NAV per share you see is already net of both. You do not pay them separately.

How the performance fee crystallises:

Only accrues when the strategy is in profit above its previous high water mark.

Strategy grows from $1.00 to $1.10 during a performance period. Performance fee: 30% of the $0.10 gain = $0.03 per share. At period end, the fee crystallises. High water mark resets to $1.10.

Strategy then declines to $1.05 and recovers to $1.09. No performance fee; still below the $1.10 mark.

Performance fees crystallise monthly, aligned with the monthly redemption window. There is no mid-month redemption.

Equalisation accounting:

Performance fees are calculated per-allocator, based on your individual entry point.

If you allocate when NAV is $1.05 (below the $1.10 high water mark), your performance fee starts on gains from $1.05, not from $1.10. You do not pay for gains that happened before you arrived.

The platform handles this transparently. You see the high water mark relevant to your allocation, not the strategy aggregate.

What your dashboard shows:

Gross performance. Strategy return before fees. Useful for comparing across strategies.

Net performance. Your actual return after the platform fee, the insurance fee, and crystallised performance fees. This is what you earned.

A strategy with 20% gross annual returns might produce 15% net after the platform and insurance fees (2% combined) and the 30% performance fee. Both figures shown, with fee impact broken out.

Why this structure:

The 1% platform fee covers institutional custody and the MakeBanc infrastructure: team, vaults, oracle, settlement, audits, legal. The 1% insurance fee is a pass-through of the insurance cost, which MakeBanc keeps none of.

The 30% performance fee aligns the asset manager with your returns. If the strategy makes money, the manager makes money. If the strategy loses, the manager earns nothing from performance.

Worked example:

You allocate $100,000. Over a year, the strategy generates 15% gross return. NAV per share rises from $1.00 to $1.15.

Platform fee. 1% of average AUT, approximately $1,075, accrued into NAV.

Insurance fee. 1% of average AUT, approximately $1,075, accrued into NAV.

Performance fee. 30% of the $0.15 per-share gain above the $1.00 high water mark. Approximately $4,500 on your position.

Net to you. $15,000 gross - $2,150 in platform and insurance fees - $4,500 performance = approximately $8,350. Net return: ~8.35%.

The platform shows all of this on your dashboard. No hidden component.

Fees if the strategy loses:

The platform and insurance fees accrue regardless. Same as any fund structure.

The 30% performance fee only accrues on gains above the high water mark. Losing year: you pay the 2% recurring fees but no performance fee.

The platform earns from infrastructure. The asset manager earns from performance.