When you redeem your investment in a GRVT Strategies, your Profit & Loss (P&L) is calculated based on several key factors. This guide breaks down the components used and provides a transparent formula for how your final return is determined.
Key Concepts
1. Share Price (Entry)
The price per share at the time of your initial investment.
2. Share Price (Redemption)
The price per share at the time you redeem your investment (this is based on actual time of successful redemption, not when you applied for redemption)
3. Number of Shares
Total shares you hold in the Strategies.
4. Performance Fees
A percentage fee charged on profits made, applicable only when there is a positive return.
5. Management Fees
A percentage fee based on the total value of your investment at the time of redemption. This fee applies regardless of whether your investment is in profit or loss.
6. Redemption Period
The interval or cutoff window during which redemptions are processed. This determines the applicable share price and may affect your exit timing.
P&L Calculation Formula
Your final P&L is calculated in two steps:
Step 1: Gross Profit Before Management Fees
Profit = (Share Price (Redemption) - Share Price (Entry)) × Number of Shares
Step 2: Apply Performance and Management Fees
P&L = [Gross Profit × (1 - Performance Fee %)] - [Share Price (Redemption) × Number of Shares × Management Fee %(compounding)]
Final Formula
P&L = [(Share Price (Redemption) - Share Price (Entry)) × Number of Shares × (1 - Performance Fee %)] - [Share Price (Redemption) × Number of Shares × Management Fee %(compounding)]
Example
Suppose you have the following:
Share Price (Entry): $1
Share Price (Redemption): $1.1
Number of Shares: 1000
Performance Fee: 25%
Management Fee: 2%
Duration of Investment: 0.5 Year
Step 1: Gross Profit
(1.1 - 1) × 1000 = $100
Step 2: Apply Performance Fee
$100 × (1 - 0.25) = $75
Step 3: Apply Management Fee
1.1 × 1000 × 0.02 x 0.5 = $11
Final P&L:
$75 - $11 = $64
📝 Notes
Fees are applied only upon redemption.
The share prices are NAV-based and reflect the underlying asset performance.