What is the meaning of high water mark in the context of cryptocurrency?

3 answers

• Marius HTJul 31, 2020 · 5 years ago
  The high water mark in the context of cryptocurrency refers to the highest point that the value of a particular investment has reached. It is used to measure the performance of a fund manager or a trading strategy. If an investment reaches a new peak, it sets a new high water mark. This means that any performance fees or profit-sharing will be calculated based on the new high water mark. It is an important metric for investors to evaluate the success of an investment strategy in the crypto market.
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• Dillon FaganJun 30, 2025 · 20 days ago
  In simple terms, the high water mark in cryptocurrency is like a benchmark for measuring the success of an investment. It represents the highest value that an investment has achieved. It is used to determine the performance fees or profit-sharing that fund managers or traders are entitled to. If the investment surpasses the previous high water mark, the fees or profit-sharing will be calculated based on the new peak. It helps to incentivize fund managers and traders to consistently achieve new highs and generate positive returns for investors.
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• Browne BeardMay 08, 2023 · 2 years ago
  The high water mark is an important concept in the cryptocurrency industry. It ensures that fund managers and traders are rewarded for their performance only when they exceed their previous best performance. This aligns the interests of investors and fund managers, as it encourages fund managers to consistently strive for better results. In the context of cryptocurrency, where the market is highly volatile, the high water mark provides a fair and transparent way to calculate performance fees and profit-sharing.
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