Fees
Aligned incentives: modest carry on AUM plus success fee over a global hurdle.
| 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.
Illustrative performance path
If NAV/share starts at 1.000 USDC with HWM 1.000:
| 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 nuance
Lagoon today uses one vault-global mark — newcomers after a dip can freeload briefly on rebound alpha. Policy may reset quarterly once Lagoon shipping allows.
Investor return (reminder)
(NAV_exit − NAV_entry) / NAV_entry # fees already inside NAV/share