Advisor Fee Cap Formulas

Available Fee Cap Limit (Period X) = (R* Average Equity (Period X)) - Amount Paid (Period X).
If Available Fee Cap Limit for any period is negative, no advisor fee will be charged.

Period X = 12 30-day cumulative periods over the last 360 days.
If an account has been opened less than 360 days, all the even 30-day periods up to the time the account has been opened will be included.  Or the Period X will be the exact number of days the account has been opened.

R (Period X) = ((0.252/360)*Number of Days)1/2

Available Equity = Average Equity over Period X

Amount Paid = Advisor Fees paid over Period X

For example, you have the client account open for one month* and the average equity for this account over a month is $10,000. You charged $50 as advisor fees for that month. Your available fee cap would be: ((0.252/360)*30)1/2*$10,000-$50 = $671.69

*30 days is used for this calculation.