Performance Fee Periods in B2COPY: Protection Against Fraudulent Investors

Automatic Charging on Schedule

B2COPY provides for automatic performance fee charging according to a set schedule. The master account owner can choose one of the following intervals:

Daily charging — fees are charged every day.

Weekly charging — fees are charged on Sunday night after Saturday market close.

Monthly charging — fees are charged on the 1st of each month.

In all cases, fees are charged only when there is net profit according to the High-Water Mark principle.

Protection Against Fraudulent Investor Behavior

B2COPY pays special attention to preventing fraudulent schemes by investors. The system automatically charges performance fees not only on schedule, but also in the following cases:

When withdrawing funds from investment account

When an investor withdraws funds from their investment account with active subscriptions, the system first calculates and charges the due performance fee, and only after that allows the withdrawal of remaining funds.

When unsubscribing from master account

When terminating a subscription, the system necessarily calculates the accumulated profit since the last fee charge and deducts the due amount before completing the unsubscription.

Protection Against "Calendar Schemes"

This mechanism effectively prevents a common fraudulent scheme where dishonest investors try to:

• Earn profits for 30 days of the month
• Withdraw all funds or unsubscribe on the 31st day
• Avoid paying performance fees to the trader

Thanks to automatic fee charging on any capital movements, such fraud attempts become impossible.

High-Water Mark Principle

B2COPY uses the High-Water Mark principle to protect investors from double fee charging. This means that:

• Fees are charged only on new profit increments
• If a strategy incurs losses, no fees are charged until the overall result exceeds the previous maximum
• Investors don't pay twice for the same profit after drawdowns

High-Water Mark Example

Scenario: Investor subscribes to a strategy with 20% performance fee, monthly charging.

Month 1:

• Initial deposit: $10,000
• P&L from copied positions: +$2,000
• High-Water Mark: +$2,000
• Fee: 20% × $2,000 = $400

Month 2:

• P&L from copied positions: +$500 (was +$2,000, then loss of -$1,500)
• High-Water Mark remains: +$2,000
• Fee: $0 (P&L below previous maximum)

Month 3:

• P&L from copied positions: +$3,000 (recovery of +$2,500)
• New High-Water Mark: +$3,000
• Fee: 20% × $1,000 = $200 (only on increment from +$2,000 to +$3,000)

Thus, fees are charged only on new P&L increments above the previous maximum value, not on recovery from previous losses.

Calculation from Subscription Date

It's important to understand that the fee calculation period starts not from a calendar date, but from the moment each specific investor subscribes. This ensures fair distribution of commission obligations regardless of when copying began.

Administrative Management

In addition to automatic triggers, the platform administrator can initiate early fee charging manually through the admin panel. This provides additional flexibility in managing commission calculations.

Key Takeaways

B2COPY offers the fairest performance fee system in the copy trading market:

For Traders:

• Guaranteed fee collection through automatic charging on all capital operations
• Protection from dishonest investors attempting to avoid payments
• Flexibility in choosing charging periods to match trading strategies

For Investors:

• Fair fee calculation only on actual profits above High-Water Mark
• Protection from double charging after drawdowns
• Complete transparency in all commission calculations

This system creates a sustainable ecosystem where successful traders receive fair compensation while investors are protected from overpayments.

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