November 2021

Why is profit sharing the best remuneration solution for social trading?

Damien

Profit sharing is the sharing of the profit made by our traders. 80% of the profit is for the client, 10% for the trader and 10% for the Diabolo platform. If there is a positive trend, everyone will get a share. In the case of a negative performance, the customer pays nothing.

Diabolo sharing profit – VAT tax may apply in some countries.

What Is a High-Water Mark?

A high-water mark is the highest peak in value that an investment fund or account has reached. This term is often used in the context of fund manager compensation, which is performance-based. The high-water mark ensures the manager does not get paid large sums for poor performance. If the manager loses money over a period, he must get the fund above the high-water mark before receiving a performance bonus from the assets under management.

Understanding High-Water Mark

A high-water mark ensures that investors do not have to pay performance fees for poor performance, but, more importantly, guarantees that investors do not pay performance-based fees twice for the same amount of performance.

Join Diabolo and copy top traders now!