> For the complete documentation index, see [llms.txt](https://liquiddefi.gitbook.io/liquid-prime-de-fi-en/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://liquiddefi.gitbook.io/liquid-prime-de-fi-en/5.fund-operation/5.3.-fund-fee-policy.md).

# 5.3. Fund fee policy

The fund's fee policy is as follows: Fund structures to this project and related profits are distributed to the respective fund subscribers according to the profit distribution policy of this white paper, after deducting the following fees:

**Performance Fee** **:** Normal subscription fees are prepaid upon receipt of funds. Subscription fees are used for custody, fund administration, legal fees, etc.

**Management Fee** :  Is paid in advance annually,  for collection and management of  information, data and operations of the fund.

**Performance Fee** : For each settlement cycle, a certain percentage will be paid in the form of a success fee for the increased profit compared to the principal. This  is the primary source of income for this project.

| Fee Type         | Standard Fee Policy                                                                                                     | Node Profit Distribution                                                                     |
| ---------------- | ----------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------- |
| Subscription Fee | 1% of AuM                                                                                                               | None                                                                                         |
| Management Fee   | Lumpsum : 2% of Investment p/a, quarterly advance payment Monthly : 0.2% of Investment                                  | None                                                                                         |
| Performance Fee  | 1.Digital : 6% \~ 10% of AuM 2.Traditional : High Watermark 25% 50% of the profit if it exceeds 100% investment return. | The distribution rate is determined according to the decision at the Node's general meeting. |