For "Reward Type," you can choose between "Share of Profit" and "High Watermark":
Share of Profit:
This method calculates the reward as a percentage of the profit made during the period.
Example:
If an investor’s initial balance is $10,000 and the profit for the month is $2,000, and the profit share is 20%, then the reward is 20% of $2,000 = $400.
High Watermark:
This method ensures the reward is only taken on new profits above the highest previous balance.
Example:
If an investor’s initial balance is $10,000, profit for the first month is $2,000 (total $12,000), and the profit share is 20%, the reward is 20% of $2,000 = $400.
If next month, the balance is $12,500, the reward is 20% of the new profit ($12,500 - $12,000) = $100.
Choose based on which method aligns with your investment strategy and goals.