This help article is meant to outline what actions will result in resetting a followers high water mark.
What is a high water mark?
As explained here, a high water mark is used to gauge the performance increase that a Follower saw during a billing period which determines the fee paid by a Follower when a Leader uses a performance-based fee. As performance pushes the high water mark up, the performance fee increases. When performance falls below the high water mark, there is no change in the fee - however - the Follower is not charged for the performance increase required to get back to the high water mark. This means the Follower is essentially following the Leader for free when they are "underwater" or when performance has dropped below the high water mark.
Are high water marks permanent?
No, high water marks are tied to the Leader/Follower relationship. If this relationship ends, high water mark data is lost and cannot be recovered. This is considered having your high water mark reset, if you were to follow the same Leader again (or a new Leader) you would begin with a new high water mark determined by your portfolio balance when you started following another (or the same) Leader again. If you were underwater when you stopped following, it's possible you could be billed for performance that you would not have had you not had a stop-follow event.
What actions will reset a high water mark?
As mentioned above, any action that results in the termination of the Leader/Follower relationship will result in losing your high water mark for that Leader. These actions include but are not limited to:
- Manual stop follow events
- Automated stop follow events
- Allowing your subscription to expire without renewing
- Exchange API connectivity issues
- Getting banned from using Social Trading for any reason
- Deleting the portfolio following a Leader
- Deleting API keys for the exchange account containing a portfolio following a Leader
- Deleting your Shrimpy account
Can a high water mark be recovered?
No, as mentioned above, a high water mark cannot be recovered once it has been reset.
Have questions, comments or concerns? Feel free to reach out to us via the blue "Support" button found in the bottom left corner of your Dashboard, or send an email to Support@Shrimpy.io.