High-Water Mark (HWM)

uint256 public highWaterMark;
uint256 public constant TOTAL_FEE = 100; // 1%

• HWM = highest totalAssets() ever.

• Fees only on new profits above HWM.

• No fee on principal or losses.

Fee Math

profit = totalAssets > highWaterMark ? totalAssets - highWaterMark : 0;
fee = profit * TOTAL_FEE / 10000;
managerFee = fee / 2;
platformFee = fee / 2;

Example:

TVL	HWM	Profit	Fee
$100K	$100K	$0	$0
$90K	$100K	$0	$0
$110K	$100K	$10K	$100