Fee Details for ForeFront Strategy

  • Fee type : Performance fee
  • Fee-charging cycle : once every 180 days
  • Fee rate: 25% of the profit made in 180 days (high-water mark applied)
  • Early termination fee : (applied when you terminate the contract before 180 days) 15%p is added to the performance fee

FF strategy takes the form of "performance fee," charging a portion of the profit as fee. 25% of the profit will be automatically charged from your USDT account every 180 days from the point of your bot creation. This means no fee is charged when there is no investment profit at the 180th day.

If you stop the asset management with FF before 180 days for any reason including partial/full withdrawal, 15% of the profit will be charged as early termination fee on top of the performance fee. Of course, there will be no such thing as early termination fee if no profit.

Also, for the period you continue investing with FF strategy without contract termination, high-water mark will be applied. This means that HEYBIT will charge a part of the profit as fee only when the performance of this fee-charging cycle has surpassed that of the highest performance in the past (=high-water mark). This is to make sure that HEYBIT would not charge you for poor performance. For more on the term, please check here.

The followings are some of the case scenario examples to help you understand.

1) Fee calculation without an early termination

  • You create a bot on Nov. 2, 2020 with 4,000 USDT.
  • On the first fee-charging day, Apr. 30, 2021, the total asset becomes 4,800 USDT with 800 USDT in profit.
  • 800 USDT * Performance fee rate 25% = 200 USDT will be automatically charged as the fee.
  • If you continue the investment, 4,600 USDT will be reinvested. The next fee-charging day will be 180 days later, Oct. 27, 2021.

2) Fee calculation with an early termination

  • You create a bot on Nov. 2, 2020 with 4,000 USDT.
  • On Feb. 1, 2021, before the first fee-charging day, the total asset becomes 4,200 USDT with 200 USDT in profit.
  • Upon the early termination of the contract, 200 USDT * Performance fee rate 25% + 200 USDT * Early termination fee 15% = 80 USDT will be charged as the total fee.
  • 4,120 USDT will be returned after deducting 80 USDT from 4,200USDT.

3) Fee calculation with additional deposit for investment

  • You create a bot on Nov. 2, 2020 with 4,000 USDT.
  • On March 4, 2021, total asset becomes 4,300 USDT with 300 USDT in profit and you deposit additional 1,000 USDT. Now the total asset becomes 5,300 USDT.
  • Regardless of the additional deposit, the fee-charging day remains on Apr. 30, 2021, 180 days from the day you created the bot.
  • On the first fee-charging day, Apr. 30, 2021, the total asset becomes 5,900 USDT. The profit is calculated by subtracting the total deposits from the total asset. Therefore, 5900 - (4000+1000) = 900 USDT is the profit which becomes the basis for performance fee calculation.
  • 900 USDT * Performance fee 25% = 225 USDT will be automatically charged as the fee.
  • If you continue the investment, 5,675 USDT will be reinvested. The next fee-charging day will be 180 days later, Oct. 27, 2021.

4) Fee calculation with the high-water mark

  • You create a bot on Nov. 2, 2020 with 4,000 USDT.
  • On the first fee-charging day, Apr. 30, 2021, the total asset becomes 4,800 USDT with 800 USDT in profit.
  • The performance fee will be 800 USDT * 25% = 200 USDT.
  • If you continue the investment, high-water mark will be recorded at 4,600 USDT and that amount will be the reinvested with the next fee-charging day set on Oct. 27, 2021.

Case 1) If the high-water mark records new high

  • On Oct. 27, 2021, the bot makes 400 USDT in profit and the total asset value becomes 5,000 USDT (4,600 → 5,000).
  • 400 USDT (Profit) * 25% (Basic fee rate) = 100 USDT will be automatically charged from 5,000 USDT as the performance fee.
  • If you continue the investment, 4,900 USDT will be reinvested and will be the new high-water mark.
  • If you terminate the contract, the high-water mark will be removed even if you come back later.

Case 2) If the high-water mark failed to record new high

  • On Oct. 27, 2021, the bot loses 600 USDT and the total asset value becomes 4,000 USDT (4,600 → 4,000).
  • Since there is no profit, no performance fee will be charged.
  • If you continue the investment, 4,600 USDT will remain as the high-water mark and 4,000 USDT will be reinvested with the next fee-charging day will be Apr. 24, 2022.
  • The bot makes 1,000 USDT in profit and on Apr. 24, 2022, the total asset value becomes 5,000 USDT (4,000 → 5,000).
  • 5,000 (total asset value) - 4,600 (high-water mark) = 400 USDT becomes the profit.
  • 400 USDT * 25% (Basic fee rate) = 100 USDT will be charged as the performance fee.
  • If you continue the investment, high-water mark will be recorded at 4,900 USDT (5,000 - 100) and that amount will be the reinvested.
  • If you terminate the contract, the high-water mark will be removed even if you come back later.
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