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I wish it was easier to understand how much 'skin in the game' AH will have. Will they make money even if crypto falls on its face?
by droopyEyelids 6y ago
I wish it was easier to understand how much 'skin in the game' AH will have.
Will they make money even if crypto falls on its face?
- Traster 6y agoFor hedge funds they used to commonly do 2 and 20 - 2% fee on investment + 20% of all profits. So if you invest $1Bn, they're getting $20m straight up, and if they make 10% on your investment ($100m) they'll make another $20m. I'm not saying that AH are exactly there - but that's likely the type of structure they use. The key though, is that a 10% return with that fee structure isn't great and they won't be getting much repeat business at that level. Long story short, yes they'll make something even if crypto goes to 0, but it's not good business for them.