As soon as a wikifolio reaches the “Investable” status, the first hurdle to being able to earn money with wikifolios has been cleared. Another requirement is an amount of at least 10,000 euros invested in the corresponding wikifolio certificate. As soon as the trader has achieved a positive performance in their wikifolio, a corresponding success bonus is paid out.
The success bonus is part of the performance fee in the amount of 0 to 30 percent of the profits made. The exact percentage is proposed by the trader in the course of creating the wikifolio.
The performance fee is calculated based on the principle of the high watermark. The high watermark highlights the currently highest level of the wikifolio within a calendar year. The decisive factor is the closing price at 11 p.m.
The performance fee is deducted from the respective capital growth, which is the difference between the old and new high watermark. The share of the success bonus depends on the amount of capital invested in the respective wikifolio certificate. If no profits are generated in the wikifolio, no performance fee and thus no success bonus becomes payable.
In contrast to classic wikifolios, no performance fee exists for wikifolios of wikifolios. As a wikifolio of wikifolios trader, you receive a proceeds share of 10 percent of the resulting performance fee of the wikifolio certificates already contained in the wikifolio of wikifolios for more than a day. The certificates of one’s own wikifolios are, however, excluded from participation. With wikifolios of wikifolios, the proceeds share becomes payable from an invested capital of 10,000 euros, too.
As soon as wikifolio traders have accumulated a success bonus of 100 euros, they can request a payout directly into their wikifolio.com account. The success bonus basically constitutes a revenue and is therefore taxable accordingly. The exact details depend, however, on the personal situation of the trader. An interview with a tax advisor is recommended for the assessment of this situation.