| Rate | Mechanic |
|---|
| Management | 2%/yr | Dilution into NAV/share — continuous |
| Performance | 20% | Above high-water NAV/share only |
| Entry / exit toll | None | Gas only |
Why this shape — No clip on each ticket — economics flow through NAV. Read together with NAV & valuation. | Epoch | Gross NAV/sh | Δ vs HWM | Perf 20% | Net NAV/sh | Next HWM |
|---|
| 1 | 1.050 | +0.050 | 0.010 | 1.040 | 1.040 |
| 2 | 1.020 | below HWM | 0 | 1.020 | 1.040 |
| 3 | 1.065 | +0.025 | 0.005 | 1.060 | 1.060 |
Mgmt fee dilution is orthogonal — look at headline NAV curves, not this toy table.
High-water mark & quarterly reset
20% performance fee applies only above the vault-global HWM (NAV/share). HWM resets quarterly — first Monday settlement on or after 6 Jan · 6 Apr · 6 Jul · 6 Oct UTC (Epoch & Settlement). Live HWM: Vault Details.
Between resets — Perf fee applies only on gains above the current HWM at each weekly settlement. After a quarterly reset, the hurdle re-anchors to that close’s NAV/share.
Investor return (reminder)
(NAV_exit − NAV_entry) / NAV_entry # fees already inside NAV/share
