What the mark represents
In the TGS CRM PAMM workflow, a performance fee applies only to eligible profit above the investor’s individual capital maximum after previously charged fees. A loss and recovery to that maximum are not charged again.
The mark is individual: two investors in the same fund can have different eligible profit because they started at different times or changed their participation. The fee rate alone is not enough to calculate a personal charge.
Profit above the previous peak
Take $10,000 of starting capital and a $10,000 previous mark. A hypothetical 10% period result creates $1,000 of gross profit. If all $1,000 is eligible and the fee rate is 20%, the manager fee is $200 and the capital after that fee is $10,800.
These figures demonstrate one closed period without deposits, withdrawals or additional charges. They do not project a trading result. The calculator on the homepage lets you change the inputs and see this same mechanism.
Recovery can produce a smaller fee—or none
If the same $10,000 starts below a previous mark of $11,000, a 10% gain only recovers to that mark. No eligible profit above it is created, so no performance fee applies in this simplified period.
If the previous mark is $10,500 instead, the period ends at $11,000 before fees. Only $500 exceeds the mark. At 20%, the fee is $100 and capital after fee is $10,900. A negative period creates no performance fee in these examples.
Contributions and withdrawals matter
In the documented CRM, a contribution increases the mark by the contribution amount. A partial withdrawal reduces it proportionally. The manager’s own investment is exempt from the performance fee.
Do not apply the homepage’s single-period calculator to a complex history of contributions and withdrawals as if it were a complete investor ledger. The real CRM records that history and calculates the individual allocation in the closed period.
A calculation is separate from a payout
Closing a period creates a recorded allocation and a commission reserve. Commission approval is a separate financial action, and payment to the manager is handled through a financial request to a separate personal account.
The educational calculator uses integer cents for the scenario and rounds to a currency unit. It cannot approve a fee, change a balance or submit a payment. Confirm the actual fund terms and the recorded calculation in the CRM.