PERFORMANCE FEE

In this section you can learn more about C-Mizar performance fees

When copy-trading a bot in the marketplace, you'll pay a performance fee to the trader based on the monthly realized gross profit and loss, up to 50% (depending on the bot). You have the possibility to reduce your performance fee, up to 50%, by staking the MZR token.

Fees Accounting

Fees are calculated for each bot, and accounted daily based on the daily realized gross profits. If the daily realized profit is positive, then the performance fee will be subtracted from your Mizar credits balance, while if negative, it will be credited back.

Example:

You copy a bot which performance fee is 10%. At the end of the month you perform a realized gross profit (i.e. no Mizar fee or exchange fees applied) of $200, with "Super Giant" as STAR level (20% discount on performance fees). At the of the month you pay a total performance fee of $200 * 10% * (1-20%)= $16. This equals to 8.0% of the gross realized profit and loss.

IMPORTANT: throughout a calendar month, the overall performance fee for a bot cannot become negative. If there's a loss, no performance fee will be charged for that month. Nevertheless, you have the option to offset this loss against your future performance fees, as explained below.

Rolling Watermark

Performance accounting operates on a 30-day watermark period, which can be prolonged to a 90-day period by attaining a level equal to or higher than Hyper Giant. If losses occur within a calendar month, they can be utilized to offset future performance fees. Refer to the example below for a clearer understanding.

Example:

You copy a bot which performance fee is 10% for 90 days, and you're a Super Nova. Your monthly PnLs are +$100, -$200, and +$200. The first month, you'll be charged $100*10%*(1-40%)= $6. The second month, you're not charged anything, and you cumulate $200 of losses that can be offset in the next month. The third month, you have made +$200 of profit, and you have -$200 cum. losses from the previous period. The third month, you're charged $(200-200)*10%*(1-40%)=$0. In total, over 90 days, you've made $100 of profit and you paid $6 of fees, equal to 6%.

IMPORTANT: if you have no Mizar credits left, the bots could run in a limited mode and positions could not be opened or managed. Always make sure to have enough Mizar credits or free volume to avoid bots running in limited mode.

IMPORTANT: once performance fees are paid at the end of the month, cannot be refunded. Cum. losses can be used only to offset future performance fees.

IMPORTANT: If there is any imbalance between the open and close quantities resulting from dust, the performance fee will be calculated as follows:$PnL=Close Quantity×(Close Price−Open Price)$.