Maintenance fees

Maintenance fees allow to configure broker fees calculated based on the total asset value on the account.

Please note! Commission calculations are based on the account's Valuated asset base metric, which includes the sum of market values of equities, bonds, and currencies held on the account.

Management fees / Admin fees

Commission accrual and write-off logic

Both fee types follow the same configuration and calculation logic but are displayed in the system as separate transaction subtypes to simplify differentiation.

For each fee type, you can configure:

• Period - settlement frequency: monthly, quarterly, semi-annual, or annual;
• Commission currency - the currency in which fees are accrued and settled. Currency can only be changed on the first day of a new settlement period. Changing currency within an active period is not allowed—this ensures calculation integrity.
• Amount - the asset threshold up to which the specified fee rate applies;
• Rate - the annual percentage of the valuated asset base to be charged.

Multiple Value ranges with corresponding Rate values can be added using the Add rates bracket button.

Please note! Amount ranges must be arranged in ascending order. Also note that if no upper Value is specified for a rate bracket, it will apply to any amount exceeding the highest defined threshold.

Example configuration with three brackets:

Value = 10,000, Rate = 5%;

Value = 100,000, Rate = 3%;

Value not set, Rate = 1%;

Accordingly, with a Valuated asset base of 10,000 in the specified currency, the fee will be charged at 5%; from 10,001 to 100,000 — at 3%; and from 100,000 upwards — at 1%.

Daily fee accrual formula:

- At the end of each day, the account's Valuated asset base is calculated;

- Daily fee = Valuated asset base × (Rate × (1 / 365)) × Conversion rate to Commission currency

Fees are accrued daily. After processing in the Daily Operations section, they appear on the account as transactions with type Block and subtypes Management fee/Admin fee. The accumulated fee amount is blocked on the account and reflected in its Blocked metric.

On the final day of the Period, the total accumulated amount is debited from the account and recorded as a transaction with type Maintenance fee and respective subtypes Management fee/Admin fee. The transaction amount equals the sum of all Block transactions accrued during the period. Account blocks are accordingly released.

Please note! If the write-off date falls on a weekend or holiday, the debit is postponed to the next business day.

Performance fee

Performance fee allows you to set commissions charged by the broker based on the increase in the value of assets in the account relative to the High-Water Mark (HWM) - the maximum historical value of assets (the Total assets indicator of the account).

Please note! The commission is calculated exclusively based on profits above HWM. The commission is charged only if the value of assets in the account exceeds the previously achieved maximum.

For each commission, you can configure the following parameters:

• Period determines the frequency of commission deduction (a deduction transaction to be posted appears in the Daily Operations section at the end of each period):
  • Monthly
  • Quarterly
  • Halfyear
  • Annual

On the deduction date, a transaction is created with the type Maintenance fee and subtype Performance fee.

• Commission currency - the currency of the commission. If the account currency set in the netting settings differs from the selected one, conversion occurs on the day of the commission.

• Rate - a numeric field for the commission rate in percentage, calculated from the profit increase above HWM for the period.

High-Water Mark (HWM) Mechanism

Performance Fee High-Water Mark - an account indicator based on which Performance fee is calculated. It is updated at the moment of day closure and reflects the maximum value of assets reached on the account during the period of the tariff.

HWM initialization

HWM is set to the account automatically when creating or modifying a tariff with Performance fee enabled, according to the following logic:

• If Account opening date is not set - HWM is not established, commission is not calculated;
• If Account opening date is set earlier than the current date:
  • If HWM was previously established - it is updated.
  • If HWM was not previously established and the current date corresponds to the Account opening date - the External transfers indicator of the account is used, otherwise - the Total assets indicator is used.

HWM Update

Within the period

Any cash inflow or outflow leads to a recalculation of the indicator, which is performed at the moment of day closure based on the External transfers indicator:

• If External transfers > 0 (for example, account replenishments were made), then: New HWM = Old HWM + External transfers
• If External transfers < 0 (for example, account withdrawals were made), then: New HWM = Old HWM × (1 - External transfers / Total assets before deduction)
• If the External transfers indicator did not change, then HWM remains the same.

On the commission deduction date

On the date of commission calculation and deduction, HWM is updated based on data from the previous trading day. The new HWM is selected as the maximum of the HWM and Total assets indicators from the previous day.

Please note! If there was no profit during the period, i.e., Total assets does not exceed HWM, then the indicator remains unchanged.

Performance fee calculation

Performance fee is calculated at the end of the established period using the following formula:

Performance fee = (Total assets of the previous day - HWM at the beginning of the deduction day) × Rate × Exchange rate to Commission currency

On the deduction date, a transaction is created for the calculated commission with the type Maintenance fee and subtype Performance fee.

Calculation example

For the performance fee, the following settings are configured:

• Rate - 20%
• Period - Quarterly
• Commission currency - USD

Account data:

• Opening date - January 1st, Total assets - 100,000 USD (HWM = 100,000 USD)

Data at the end of the quarter (March 31st):

• Total assets = 125,000 USD
• HWM = 100,000 USD
• No incoming/outgoing transfers

Result:

• Performance Fee = (125,000 - 100,000) × 20% = 5,000 USD
• A transaction for 5,000 USD is created
• HWM is updated: HWM = 125,000 USD
• Performance Fee for the next quarter is calculated based on the new HWM

Tariff Changes

Any changes to the Performance fee settings result in "crystallization" (fixing the results of the current period):

1. On the day of tariff change, the performance fee for the current period is deducted.
2. HWM is newly established according to the new tariff settings on the first closed day in EOD (End of Day).
3. If the tariff is deleted, HWM calculation stops.