How Premium Strategies are charged
Introduction
In this article, we are explaining the mechanism to charge users for the Premium trading algorithms available in our Strategy Library.
To maintain transparency and align our interests with investors and trading experts, we charge a performance fee (between 5% to 15%) based on the high-water mark mechanism. This fee is applicable when users leverage our platform to make profits using advanced algorithms created by other traders.
High-Water Mark Mechanism
What is a High-Water Mark?
A high-water mark is a fundamental concept in investment finance that represents the highest value an investment has ever reached. In the context of our trading platform, it ensures fair compensation for the success of our Premium trading algorithms.
How Does the High-Water Mark Mechanism Work?
The high-water mark mechanism operates to ensure that our users are only charged performance fees on new profits generated by the platform. It prevents fees from being charged on profits that merely offset losses from previous periods. This mechanism is designed to align our success with investors and expert traders.
Performance Fee Structure
Calculation and Billing
We charge a performance fee of 5% to 15% on profits generated by your account when it exceeds the previous high-water mark. The calculation is straightforward: if your account experiences new profits, we charge a commission of those profits as a performance fee.
Billing Cycle
The performance fees are billed monthly, and the process is automated for your convenience. At the beginning of each month, an invoice will be generated based on the Return on Investment (ROI) from closed positions in the previous month. If your account has achieved new profits surpassing the previous high-water mark, the designated card on file used for the subscription will be charged.
Card on File
We charge the card on file to ensure a seamless and hassle-free experience for our users. This is the same card you used for your platform subscription, making the process of handling fees simple and efficient.
Invoicing and Notification
Before any charges are made, an invoice detailing the performance fees will be sent to you. This transparent approach allows you to review the charges and understand the basis for the fee calculation. The card will then be automatically charged at the beginning of the next month, ensuring timely and accurate processing.
Allocation of Performance Fees to Trading Experts
At Vestinda, we believe in recognizing and rewarding the expertise of our trading algorithm creators. The performance fees charged on profitable accounts utilizing strategies from our Strategy Library are credited to the trading experts responsible for crafting these powerful algorithms.
Fair Compensation for Expertise
When your account experiences new profits and incurs performance fees, a portion of these fees is allocated to the original creators of the strategies you've employed. This direct attribution ensures that our trading experts are fairly compensated for their innovative and successful algorithms.
What are the Premium Strategies
Premium strategies are all strategies that you can find in the Strategy Library.
It means that when using any of the strategies from the Library you are paying the Performance Fees.