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Hyro charges no management fee at launch. The performance fee is the only monetization model — and it’s protected by a high-water mark with a per-LP cost basis.

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The high-water mark (HWM)

A performance fee is charged only on equity above the prior peak. Once a new peak is set, that becomes the new baseline. So the same gain is never taxed twice — if a vault rises, falls, and rises again, you only pay on net new profit above your previous high.

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Per-LP cost basis

Each LP’s HWM is their own entry NAV. Two LPs who deposited at different times have different baselines, and each pays performance fees only on profit above their personal high. You’re never charged for gains that happened before you deposited.

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Two fee structures

For traders who came through the on-chain challenge path.Worked example. On 100ofprofitata20100 of profit at a 20% fee, 20 goes to the fee pool and you keep 80.Ofthat80. Of that 20: the trader gets 16,LPsget16, LPs get 3 back as carry, the protocol gets 1.∗∗Net:LPs1. **Net: LPs 83, trader 16,protocol16, protocol 1.**

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When fees crystallize

Performance fees crystallize only at realized events, never on paper gains:
  • LP withdrawal
  • Monthly snapshot
Once crystallized, the manager, protocol, and insurance shares can be claimed.
Because crystallization is tied to realized events and protected by your personal HWM, an unrealized swing up and back down doesn’t cost you anything. You pay on net realized profit above your entry, full stop.