Our fee structure is designed to align our interests with yours, scaling based on your invested capital and regulatory classification.
Client Categories
Category
Testing Client
Non-Qualified Client
Qualified Client
Account Size
Less than $50,000
$50,000 – $1,100,000
Above $1,100,000
Fee Structure
1 year no advisory fees, then AUM fee only
AUM fee only
AUM fee plus performance fee
Fees by Strategy
Product
Nx1
Nx2
Nx3
Testing Client
<$50K
1 Year No Fees
1.0% AUM fee
1.5% AUM fee
2.0% AUM fee
Non-Qualified Client
$50K–$1.1M
1.0% AUM fee
1.5% AUM fee
2.0% AUM fee
Qualified Client
>$1.1M
1.0% AUM fee
+10% performance fee
with 5% Hurdle Rate
1.5% AUM fee
+20% performance fee
with 7.5% Hurdle Rate
2.0% AUM fee
+30% performance fee
with 10% Hurdle Rate
Additional Details
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Testing ClientsAccounts with less than $50,000 of assets are offered an introductory period with no advisory fees charged for the first year. After the first year, the applicable annual AUM fee for the selected strategy will apply. Testing Clients are never charged performance fees, even after the first year.
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Non-Qualified ClientsClients with assets between $50,000 and $1,100,000 are charged only an annual AUM fee based on the selected strategy. No performance fees apply to Non-Qualified Clients.
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Qualified ClientsClients with assets above $1,100,000 are charged both an annual AUM fee and a quarterly performance fee based on realized net profits. Performance fees are calculated quarterly and apply only to gains exceeding both a fixed annual hurdle rate and the client’s prior peak net asset value (high-water mark).
Notes
We do not take custody of client assets as defined by SEC rules. All client accounts are opened directly under the client’s own name with our independent custodian, Interactive Brokers. While we deduct advisory fees, this is done in accordance with SEC custody rule exemptions, with client authorization and custodian invoicing.
Custody
All advisory fees are deducted automatically from client accounts by Interactive Brokers according to the advisory agreement authorized by the client.
Fee Deduction
Performance fees are charged only to clients who meet the definition of "Qualified Clients" under SEC regulations.
Performance Fees
Fee schedules are subject to change with appropriate advance notice and consent from all affected clients.
Fee Changes
