Performance Fee Framework
High-Water Mark Settlement & Broker Automation
Performance fees are applied exclusively to net profitable results above the high-water mark, calculated and settled automatically by the broker's impartial PAMM system. This eliminates manual reconciliation and ensures transparent fee application without internal manipulation.
High-Water Mark Protection
Performance fees are never charged on recovery of losses. Fees apply only to new net growth above prior peak equity.
The High-Water Mark (HWM) is an institutional standard protecting capital partners from paying performance fees multiple times on the same capital gains. If account equity declines, no fees are assessed until equity exceeds its previous highest level.
Capital Partner Protection
HWM Principle
Fees are never charged on the recovery of losses. If account equity dips below previous peak, no performance fees are crystallized until equity surpasses the prior high-water mark.
This ensures V-OneFX only earns performance fees on genuine new value creation, not capital recovery.
Operational Integrity
Broker-Calculated Settlement
All fee calculations are handled by the broker's impartial PAMM system, not by V-OneFX. This eliminates manual reconciliation, ensures 100% accuracy, and removes any potential for internal manipulation.
Settlement occurs automatically based on the assigned tier's cycle.
Example: HWM in Practice
Capital partner allocates $10,000. Account grows to $12,000 (HWM established at $12,000). Performance fee is charged on $2,000 gain. Account subsequently declines to $11,000 due to drawdown. No additional fees are charged. Account must exceed $12,000 before performance fees apply again.
If account later grows to $13,000, performance fees apply only to the $1,000 gain above the previous $12,000 HWM.
Universal Allocation Settlement Tiers
Settlement frequency and performance fee structure are determined automatically by capital size. Assignment is recalculated at each settlement period based on allocated capital.
Important: Tiers Affect Settlement and Fees Only
Settlement tiers determine how frequently performance fees are settled and the fee percentage split. They do NOT affect execution, strategy, or performance outcomes. All capital allocated to Universal Allocation is traded together in a single master execution model with identical percentage growth or loss for all participants, regardless of capital size or tier. The only differences are settlement frequency and fee structure: smaller allocations settle more frequently with higher fee sharing, larger allocations settle less frequently with lower fees.
Micro Allocation
Below USD 1,000
Entry-level access requiring faster reconciliation and higher volatility sensitivity management for smaller capital.
Entry Allocation
USD 1,000 – 10,000
Balanced operational efficiency and investor liquidity for developing allocators transitioning toward core participation.
Core Allocation
USD 10,000 – 100,000
Standard professional settlement cycle with reduced noise and cleaner performance attribution for established capital partners.
Advanced Allocation
Above USD 100,000
Institutional-style settlement with capital preservation priority and alignment with mandate-level expectations.
Automatic Tier Assignment: Settlement tier is determined automatically by the broker's PAMM system based on allocated capital size. If capital grows or declines across tier thresholds, assignment is updated at the next settlement period. Capital partners do not need to manually select or request tier changes.
Institutional Mandates Fee Structure
Institutional Mandates operate under tier-specific performance fee structures with mandate-level governance and 24-month minimum engagement periods.
Qualified Institutional
Above USD 100,000
Accredited Institutional
USD 100,000 – 500,000
Institutional Counterparty
Above USD 1,000,000
Institutional Mandate Requirements: All tiers subject to 24-month minimum engagement period. Early withdrawal may incur penalties or forfeiture of performance incentives. Performance fee structures and operational terms are disclosed during the qualification process. Access is capacity-constrained and subject to alignment verification.
Operational Safeguards
Non-Custodial Protection
Capital remains in client-owned, broker-segregated accounts at all times. V-OneFX holds trade execution authority only. V-OneFX has zero access to initiate withdrawals or external transfers from capital partner accounts.
Interim Settlement
If a withdrawal occurs between regular settlement cycles, the broker's PAMM system performs an automated Interim Settlement to reconcile accrued performance fees up to that moment, ensuring accurate fee calculation.
Capital Allocation Framework
Performance fees are applied transparently through broker-automated settlement under high-water mark protection. Tier assignment is automatic based on capital size.
Universal Allocation Institutional Mandates