Success Fee Portfolios at Tokenbox. Now Live!
Hello Tokenboxers!
What characterizes a good portfolio manager? Not only high performance and yields. Of course, his interest in the long-term success of his investors is also important.
One of the best ways to motivate a manager is to get a share of the profits — a Success Fee.
We are pleased to announce that now the Tokenbox platform allows to create portfolios with a Success Fee model.
Here is some important information about our new feature.
- Only new Portfolios can be created with a Success Fee model. Portfolios that are already working can change the fee model.
- When creating the Portfolio you can set only 2 kinds of fees. For example, Entry + Exit, Entry + Success, Exit + Success.
- Success fee is charged only in case when the investor earned more than 10 USD (or equivalent in other reference currency) as a profit holding Portfolio tokens. So Success Fee is a share of the profit that will be transferred to the manager in the form of Portfolio tokens.
For example, investor bought 100 portfolio tokens for 1000 USD (10 USD per token). After that token price increased and became 12 USD. In this case investor’s profit is: (12 * 100) — (10 * 100) = 200 USD.
If success fee is set as 20% rate than 200 * 20% = 40 USD is a share of profit that has to be transferred to the manager. If assets will be transferred from the portfolio directly this impacts the token price. To prevent such a situation Success Fee is deducted in the form of portfolio tokens that will be transferred from investor to manager.
4. The calculation of Success fee will be conducted in 2 cases. First, success fee will be calculated when the investor decides to sell portfolio tokens. The second case, it’s so-called Monthly Success Fee Deduction, when possible profit will be calculated for investors of all Portfolios (with a Success Fee model) on the Tokenbox platform.
5. After the Success Fee calculation next deduction is only possible if token price will break the level of previous calculation and deduction.
6. Success Fee calculations counts all operations with the tokens — purchases, redemptions and previous Success Fee deductions. So Investors can be sure that they will not pay twice.
Success Fee is the most popular type of rewards, which serves both the interest of managers and additionally provides investors with confidence that the manager will do his best to achieve excellent results!
