Hello 184.eth, my name is Santi from Karpatkey. I would like to provide additional information to clarify the fees situation. According to EP 2.2.5, Karpatkey charges two types of fees that are fully nominated and collected in ETH:
- Management fee: 0.5% of the nAUM (non-custodial assets under management). This fee is calculated as follows: Management fee = Weekly portfolio balance (in US dollar terms at the time of the report) * 0.5% / 52, converted to ETH priced at the moment of issuing the report.
- Performance fee: 10% of the yield obtained during the previous week, converted to ETH priced at the moment of issuing the report.
Please note that the performance fee is only applied to the yield obtained on a weekly basis. Unless there’s a problem with one of the ETH-neutral strategies or the ETH derivatives, the positions should never yield a negative result. The calculation takes into account the APR by considering the return on invested capital and any additional rewards. All calculations are nominated in US dollar and then converted into ETH using the prices stated in the report. 10% of the resulting ETH is the performance fee.
For more information, you can refer to the Gnosis DAO report recently issued by Karpatkey.