I charge 20% of the profit; I don’t charge a fixed cost. The billing is monthly and postpaid. At the turn of the month, I generate an invoice with a report of profits and losses. Then, I send the invoice to the clients by e-mail.
Example: Suppose January resulted in a profit of $1000; then, I charge $200 in commission at the turn of the month from January to February.
In the case of losses; then, I take a negative commission of 20% of the loss. I give the value in the form of credit to discount a positive commission in the future.
Example: Suppose February resulted in a loss of $500; then, I record a credit of $100 in future commissions. Suppose March resulted in a profit of $1000; then, the commission would be $200; but, I discount $100 in credits; then, I charge the net commission of $100.
The credits are automatically transferred between services.
Example: Suppose you’ve subscribed to two services. The first service resulted in a loss of $500; and, the second service resulted in a profit of $1000; then, the commission of the second service would be $200; but, I transfer $100 in credits from the first service to the second service; then, I charge the net commission of $100. This transfer of credits is discriminated in the invoice.
The credits are automatically converted between currencies.
Example: Suppose you’ve subscribed to two services. The first service resulted in a loss of €500; and, the second service resulted in a profit of $1000; then, the commission of the second service would be $200; but, I transfer €100 in credits from the first service to the second service. Let x be the close price of the Euro at the end of the billing period; then, I charge the net commission of $200-x*€100. The exchange rate is discriminated in the invoice.
I will not pay for the loss caused by the client’s quitclaim.
Example: Suppose April resulted in a loss of $500; then, I give a credit of $100 in future commissions. But, the client canceled the service. So, the client decided to realize the loss of $100. I don’t pay the loss.
I will not pay for losses caused by my quitclaim.
Example: My activity can be profitable for years. However, competition with new technologies can eliminate market inefficiencies; profits may be diluted among several competitors. Suppose I decide to cancel the service; I would make such decision in mutual benefit. If I do, I will not pay for the losses.
Currency
I charge the commission in the same currency of the profit; thus, the commission has no risk of foreign exchange. As a result, you can’t make one single payment for more than one service making profits in different currencies. The payments can be aggregated by currency. The invoice contains an aggregation by currency.
Payment
At the turn of the billing period, I reserve the value of the commission from the trading balance; then, any balance that becomes available will not be re-invested until the target value is reached. Eventually, I transfer the money from the sub-account to the main account. Then, you should transfer the money from your main account to my main account.
The payment address will be in the invoice. The address can be different for each currency; and, the address can change over time. I recomend to take a look at the address before transfering any money.
WARNING! I only accept payments via internal Deribit transfer. Do not send me money from other exchanges or from your own wallets. Deribit provides a note attached to the transfer. You should copy the field “user id” of the main account and paste it into the field “note” in order to identify yourself. I don’t identify who is paying from outside of Deribit. I won’t return the money to anyone who asks me to. I can only return the money to the same address which I received from.
I wait 3 minutes to process your payment in order to give you 3 minutes to attach the note. If you forget to attach the note within 3 minutes; then, your payment will be processed within two hours after you attach the note. Because, I receive notifications in the event of deposits, not in the event of attachments. If your investment is too important to wait for two hours; then, you can send another payment; then, I process both payments in 3 minutes.
Delinquency
While you don’t pay me; I trade in reduction mode. That is, orders that increase the size of the position will be blocked; only orders that reduce the net size of the position will continue to be submitted. Your position will fade out. Eventually, all positions will close or expire; and everything will become cash again; the capital will not be reinvested.
The commission is charged at the time the trader transfer the commission from the sub-account to the main account. At this moment, the service turns to run in reduction mode; unless, you have paid the commission in advance. You receive an e-mail with the exact value of the commission before the charge to happen. Nevertheless, you can pay any value greater than or equal to the commission. I will not forget the change in the next bill.
If you pay a value less than the commission; and, you’re subscribed to more than one service; then, the payment can be enough to run one service in growth mode while another service runs in reduction mode. The service that charges commission first will receive the payment first; because, I process the payments in the same chronological order of the commissions. Eventually, all the services will run in reduction mode in the next billing cycle.