Fee Structure Review — DIP-Swing MTF Trading

Assumptions

Record start date

Excludes trades before this date (e.g. early dev/test trades).

Current model: fee (% of capital / month)

Flat $ per month, computed against that month's own actual capital deployed (real cost basis from the trades placed that month), gated by the hurdle below.

Current model: profit hurdle (×fee)

2× (fixed)

No fee charged unless realized profit is at least this many times the fee. Applies to both flat-capital-based fees (Current Fee and 1% AUM) — a %-of-profit fee already scales down with a small profit, so the same hurdle formula is meaningless there (it reduces to a fixed check on the rate, not the trade size).

Proposed model: % of realized profit

Charged only on net-positive months, no fee on losing months.

Tax rate on realized profit (%)

Applied equally to both models below, for the net take-home comparison.

Hypothetical: monthly return scenarios

5% / 10% / 20% (fixed)

Only used by the Hypothetical Tier Comparison below — not tied to any real trade record, not a projection or promise, purely for comparing fee structures across a few assumed returns.

Months of Data

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Total Trades

—

Avg. Monthly Return

—

Total Realized Profit

—

Monthly Breakdown

All figures are the real dollars from each month's actual trades — no hypothetical capital.

Month	Trades	Return %	$ Profit	Current Fee	Proposed Fee
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Capital Tier Comparison

The same real return from the months recorded above, applied to different account sizes — a one-time figure for this exact period, not projected forward. 1% AUM is a typical wealth-advisor annual fee, prorated to this period's length (not annualized) for a fair comparison.

Capital	Total Profit	1% AUM (period)	Current Fee (1%/mo)	15% of Profit	30% Tax	Takehome
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Hypothetical Tier Comparison

Not tied to the real trade record above — a flat assumed monthly return applied to each capital tier, purely to compare fee structures. Not a projection or promise of future performance.

Capital	Avg Return	1% AUM (monthly)	Current Fee (1%/mo)	30% Tax	Takehome
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Net Take-Home (actual — the months recorded above, no projection)

Current Model

Gross profit—

Fee—

Tax—

Net to customer—

% of gross kept—

Proposed Model (% of Profit)

Gross profit—

Fee—

Tax—

Net to customer—

% of gross kept—

These are actual totals over the recorded months only — nothing here is projected or annualized. Every month in this dataset happened to be net-positive, so a high-water-mark carry-forward (crediting a prior losing month against a later winning one before the proposed fee applies) doesn't change these numbers — but it should still be part of the real policy for any month that isn't.