Performance fees are fees paid out to traders for making good trades. It aligns incentives between traders and users, rewarding traders who make good trades for users, and not allowing any fee accrual for traders who don’t perform well.
Performance fees are taken only if the trader makes a trade that exceeds the Set's high-water mark, meaning that they've made a profitable trade. A Set will follow a certain benchmark token to beat, which can be ETH, BTC, USD, or other tokens. Each time a trader makes a profitable trade, a new high-water mark is set at the current benchmark's price.
Traders are given the choice of choosing different fee structures for their Set, including combinations of buy fees, performance fees, and streaming fees. Be sure to check the fee structure of a Set before buying into it.
Note: Performance fees are paid after streaming fees are accounted for.
Performance Fee Changes
Traders are allowed to change the fee structure of their Set which takes 5 days for performance fee and streaming fee changes. You will be notified via email if you've registered your email when a fee change is taking place.