Trader compensation: Calculation of the proceeds share in wikifolios of wikifolios
The proceeds share in wikifolios of wikifolios
From an investment volume of 10,000 euros, traders of wikifolios of wikifolios 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.
A simplified example of the proceeds share calculation in wikifolios of wikifolios
Let’s assume that 100,000 euros are invested in a wikifolio certificate belonging to a wikifolio of wikifolios.
- The wikifolio of wikifolios contains four wikifolio certificates in equal parts (25 percent each) in the virtual stock, they have been held for at least one day.
- One of the wikifolio certificates (with an invested capital of 2,000,000 euros) which was invested in via the certificate belonging to the wikifolio of wikifolios (25,000 euros), reaches a new high watermark (new high for the year) and triggers a performance fee of 5,000 euros in the sub-wikifolio.
- The share of the invested capital via the wikifolio of wikifolios certificate (25,000 euros) on the total invested capital in the wikifolio generating the performance fee (2,000,000 euros) is 1.25 percent (25,000 divided by 2,000,000).
- The share of the performance fee related to the invested capital via the certificate related to the wikifolio of wikifolios amounts to 62.50 EUR (1.25 percent of 5,000 euros).
- The basis for your revenue share is the performance fee after a deduction corresponding to the German VAT rate.(1) Assuming an applicable German VAT rate of 19 percent, the base for the success bonus in our example is 52.52 euros (62.50 divided by 1.19).
You will therefore receive a success bonus of 10 percent of 52.52 euros. That is 5.25 euros.
As needed, a value added tax chargeable event will be considered.
(1) This deduction stems from the contractual setup between the issuer of wikifolio certificates and wikifolio Financial Technologies AG and is completely independent from the VAT treatment of the transaction between you as a wikifolio trader and wikifolio.
The imputed VAT rate applicable for the deduction is the German VAT rate at the moment a new high watermark is reached, and the performance fee is calculated. For the period from Jul 1 to Dec 31, 2020 the deduction is reduced to 16 percent due to temporary tax reliefs in relation to the Covid19 pandemic (2. Corona Steuerhilfegesetz). For all other periods, the applicable rate for the deduction is 19 percent.
Due to technical reasons, you will receive separate Credit Notes, if the payout amount is made up by success premiums earned during periods with different imputed VAT rates.