A significant factor when considering which Crypto Strategy to choose is its fee distribution. There are two types of fees a Strategist can set, and the standard 0.5% exit cost.
A copier pays the copy fee over the course of a year. Each day, the algorithm looks at your current amount copying a Strategy and takes the correct percentage. In other words, the fee percentage is split into 365 parts, with one part paid every day.
The Performance fee works based on the profit of the Strategy. The Strategist can set the fee to be collected weekly, monthly or quarterly. Not all Strategies can be profitable all the time, so it makes sense for copiers to pay only for those that work. That’s why the performance fee is based on the “high watermark”. This means that the fee will calculate profits from the initial investment or the previous highest point. A copier will only pay fees on actual profits and not for the Strategy’s volatility.
In cases where the Crypto Strategy isn’t profitable at the collection period, the copier pays no performance fee. You only pay if you get something from it. Check out the performance fee blog post if you'd like to dive deeper.
The Strategist, however, does not pay the before mentioned fees. They keep their investments to themselves.
But where do these fees go? Once collected, they are initially split into two parts: the Strategist and ICONOMI. Then ICONOMI’s part is further divided to fuel the referral program. This is where users who refer others get their cuts.
Lastly, let’s talk about the exit cost. It’s not a fee, and it is fixed at 0.5% across all Crypto Strategies. It’s used to cover the copier’s trading costs.