In the context of performance fee, "crystallization" and "settlement" refer to different stages of the performance fee process.

"Crystallization" refers to the point at which the performance fee is determined and calculated based on the investment's performance. This typically happens at a specific point in time, such as weekly or monthly.

At Settlement, ATSR Fee is crystallized. In other words, "crystallization" refers to the point at which the performance fee is determined and calculated, while "settlement" refers to the point at which the performance fee is paid out.

At settlement, the amount of new capital injection will be calculated based on the CI%.

Given that only at Settlement can the SNRF be topped-up by ATSR Fee or debited to ATSR according to the arrears schedule, the projected ITH or the timing of each Settlement is dynamically determined by the combination of three (3) criteria:

1. CF (e.g. at the beginning of month if crystallization frequency is monthly)
2. MRTF (e.g. >211 trades)
3. TMAEG (e.g. >10% of Excess Gain)

In short, all three criteria must be met for a Settlement to take place.

Scenario. Feel free to copy this ‣ to your own Google Workplace to find out more about how SNRF is structured to balance the interests of ATSR and Eon Labs Ltd.. Also, check out the Fair Pay page for more info.