Before following a leader with Performance fees, you might be wondering what happens to your fees if funds are added or removed from your portfolio.
Funds that are deposited into a portfolio following a leader will not count as "performance" for the sake of charging fees. In other words, you will not incur fees for depositing funds into a portfolio that is already following a premium leader.
Instead, Shrimpy will increase your High Water Mark (HWM) such that it is proportional to the deposited funds. That way charges are not incurred for depositing funds.
Similar to depositing funds into a portfolio, withdrawing funds from a portfolio following a premium leader will result in the HWM being adjusted.
In the case of withdrawals, the HWM will be adjusted proportionally to the funds that were withdrawn from the portfolio. That way your portfolio will still be accurately charged for performance changes that were due to the leader.
If you have any additional questions about Shrimpy, don't hesitate to reach out to [email protected] or use the internal Shrimpy support system to ask questions.