Automatic Billing Methods and Examples

Percent of Net Liquidation Value

Description: Percentage of Net Liquidation Value entered as an annualized percentage, applied on a daily basis (252 business days are applied in this calculation method).

Assumption: You specify 5% of Net Liquidation Value as an annualized percentage, and your client’s previous day ending-equity is $100,000.

Calculation: Your advisor client fees for the given day will be: 5%*$100,000/252=$19.84.




Flat Fee

Description: Flat fee entered as an annualized amount, applied on a daily basis (apportioned by 252 days).

Assumption: You specify $1,000 as an annual flat fee for your client.

Calculation: Your advisor client fees daily payment will be: $1,000/252=$3.97.




Percent of Annual P+L

Description: Percentage of Annual Positive P+L entered as an annualized percentage, applied on an annually basis as of 12/31.

Assumption: You specify 20% of annual positive P+L as your advisor client fees, and you made $50,000 in P+L for your client for that year.

Calculation: Your advisor client fees would be: $50,000*20%=$10,000.




Percent of Market-to-Market P+L

Description: Percentage of Positive Market-to-Market P&L entered as a percentage, applied on a quarterly basis as of 3/31, 6/30, 9/30, and 12/31.

Assumption: As an example, if you specify 2% of Market-to-Market P+L, you made $50,000 in P+L for the last quarter.

Calculation: Your client will be charged $50,000*2%=$1,000 for the quarter.

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