High-Water Mark (HWM) monthly
- 26 Sep 2025
- 2 Minuten zu lesen
High-Water Mark (HWM) monthly
- Aktualisiert am 26 Sep 2025
- 2 Minuten zu lesen
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Artikel-Zusammenfassung
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At Zero, traders have the opportunity to generate additional income through a 15% performance fee, calculated on the profits earned with allocated capital under the High-Water Mark (HWM) model.
This system ensures that performance fees are only charged on actual profits generated, avoiding double-charging and rewarding each trader's net performance.
By default, these fees are settled quarterly — every three months, provided that the last high-water mark has been surpassed. However, there is an alternative designed for traders who wish to monetize their performance more frequently: the Monthly High-Water Mark.
What is the Monthly High-Water Mark (Monthly HWM)?
The Monthly HWM allows you to collect your performance fees every month, as long as you've generated additional profits above your last high-water mark.
Key differences compared to the quarterly model:
Features of the Monthly HWM
- More frequent payouts: Instead of waiting three months, you can receive your performance fees month by month.
- Reset & high-water mark: By defining the HWM as monthly, each month starts from 0. If you ended the previous month with a loss, that loss does not carry over to the next month, since the HWM resets to 0 in such cases.
- Flexibility: Applies to all DarwinIA, Booster, or permanent allocations (not to investor capital, which always remains under the quarterly HWM model).
DarwinIA, Boosters, and permanent allocations have independent performance fee and HWM calculations.
Practical Example:
Let’s say you receive an allocation and generate €1,000 in profits in your first month.
- Your HWM1 is set at €1000.
- You receive 15% of those profits as a fee (€150).
- In the second month, you lose €500.
- No performance fee is paid, as you did not exceed HWM1.
- The HWM is reset to €1000, so in month 3, you'll earn fees on any profit above that.
- In the third month, you make €2000 in profit.
- A new HWM2 is set at €3000 (total accumulated profit = HWM1 + HWM2).
- You earn fees only on the difference: €2000 x 15% = €300.
Result: You earned €450 in performance fees in just three months, instead of waiting until the end of the quarter. Also, because of the reset in the second month, you earned more — with a quarterly HWM, you'd have received only €375 (€1000 from month 1 – €500 from month 2 + €2000 from month 3 = €2500 profit → 15% = €375).
How to activate the monthly HWM?
To benefit from this model, simply activate the option from your user profile in Zero.
Available only for new clients or those who reset their account, and can only be activated within 14 days of starting your subscription or account reset.
In Summary
The Monthly High-Water Mark in Darwinex Zero is a premium option designed for ambitious traders looking to accelerate the conversion of their performance into real income.
If your strategy has the potential to deliver consistent profits, don’t wait three months:
Activate the Monthly HWM and start earning performance fees month by month.
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