Scenario 1: Start balance is below HWM
The distance between the new HWM and the previous HWM will be used to calculate the profit-sharing fees.
Scenario 2: Withdrawals made when start balance is lower than HWM
The same distance to the HWM should be gained before any profit-sharing fees can be paid. When there are withdrawals that lowered the balance, this same distance should be added to the new balance to form a current HWM which will serve as the benchmark to calculate the fees.
Scenario 3: Withdrawals made when start balance is higher than HWM
In this scenario, there isn’t any distance to HWM needed to gain as the start balance is already higher. The current HWM will be the start balance net of the withdrawals and the profit-sharing fees will be based on the distance between the new HWM and the current HWM.
Scenario 4: Deposits made when start balance is below HWM
We have to take into account the distance to HWM and the deposits made so that only actual gains higher than the distance to HWM will be calculated for the profit-sharing fees.
Scenario 5: Deposits made when start balance is below HWM
The distance between the new HWM and the current HWM will be used to calculate the profit sharing fee so that the deposits will not be mistaken as trading profits.