> For the complete documentation index, see [llms.txt](https://titano-protocol.gitbook.io/titano/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://titano-protocol.gitbook.io/titano/titano-guardian/performance-fee-model.md).

# PERFORMANCE FEE MODEL

A conceptual strategy fee model could use:

#### Management Fee

A small percentage for maintaining a strategy.

#### Performance Fee

A percentage of **realized profits**, subject to the strategy's terms.

#### High-Water Mark

Performance fees are only charged on new net profits above the previous high-water mark.

Example:

User deposits:

**$10,000**

Portfolio increases to:

**$12,000**

Profit:

**$2,000**

If the strategy charges a 10% performance fee:

**Fee = $200**

If the portfolio later falls to $11,000 and then returns to $12,000, the previous high-water mark prevents charging another performance fee on the same $2,000 profit.

This aligns creator compensation with actual value creation.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://titano-protocol.gitbook.io/titano/titano-guardian/performance-fee-model.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.