Fee Structure

The ZOLBO fee structure is designed to align with user success, ensuring transparency and fairness. ZOLBO charges fees in ZLB (1 ZLB = 1 USDT, pegged to the value of 1 USD) for its services, consisting of a Basic Fee, Performance Fee, OFF Fee, and Penalty Fee.

All fees are calculated and deducted daily at 00:00 UTC or at the time of an OFF event, whichever occurs first, ensuring users are always up to date with their account balance and fee obligations. Below is a breakdown of each fee type and how they are calculated.

Fee Overview

Fee Type	Description	Amount
Basic Fee	Daily maintenance fee charged to keep ZOLBO operational. Calculated hourly and rounded up to the nearest full hour.	Pro-rata based on 0.1 ZLB/day
Performance Fee	Charged on profits that exceed the portfolio’s High-Water Mark (HWM) (the highest value your portfolio has ever reached).	25% on profits above HWM (in USDT)
OFF Fee	First 2 OFF events are free each day. From the 3rd OFF event onward, a fee is charged.	5 ZLB per OFF event (after the 2nd daily OFF)
Penalty Fee	Triggered when a user interacts with their Binance account, causing ZOLBO to turn OFF.	Greater of 1% of assets under custody or 5 ZLB
Minimum ZLB Balance	Required to cover all potential fees, ensuring ZOLBO remains active. (Does not include OFF Fee.)	Based on daily fees and potential penalties

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Basic Fee

ZOLBO charges a Basic Fee of 0.1 ZLB per day, prorated hourly based on how long ZOLBO is running. This prorated fee is calculated hourly, and any fraction of an hour is rounded up to the next full hour. This means even partial hours count as full hours in the fee calculation.

For example, if ZOLBO runs for 7 hours and 10 minutes, the Basic Fee for that day is:

$$\text{Basic Fee} = \frac{8}{24} \times 0.1 = 0.0333 \, ZLB$$

This fee is recalculated and deducted daily at 00:00 UTC.

Fee Type	Description	Amount
Basic Fee	Hourly fee based on ZOLBO uptime, rounded up to nearest hour. Always charged.	Pro-rata based on 0.1 ZLB/day

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Performance Fee (High-Water Mark)

The Performance Fee is applied only on profits that exceed the portfolio’s High-Water Mark (HWM), which is the highest value your portfolio has reached in USDT. This ensures users are charged only when actual profits are made, and only for the amount above the HWM. The performance fee is 20% of the profits above the HWM, and it is charged in addition to the Basic Fee.

• The Performance Fee is applied separately from the Basic Fee.

• If no profits are made above the HWM, only the Basic Fee is charged.

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Example Scenario for Performance Fee Calculation (in USDT):

Day	Event	Portfolio Value (USDT)	High-Water Mark (USDT)	Profit (USDT)
Day 1	Initial Investment	1,000	1,000	0
Day 2	Portfolio gains	1,050	1,000	50
Day 3	Portfolio loss	950	1,050	-100
Day 4	Deposit of 500 USDT	1,450	Adjusted to 1,550	0
Day 5	Portfolio gains	1,600	1,550	50
Day 6	Withdrawal of 300 USDT	1,300	Adjusted to 1,250	0
Day 7	Portfolio gains	1,400	1,250	150

Note: When deposits or withdrawals occur, the HWM is adjusted proportionally to reflect these changes, so users are not unfairly penalized.

Performance Fee and Basic Fee Calculations:

Day	Explanation
Day 1	Initial investment of 1,000 USDT. No fee is charged since no profits are made.
Day 30	The portfolio gains 50 USDT (1,050 – 1,000). The performance fee is calculated as 25% of 50 USDT = 12.5 ZLB, which is charged in addition to the Basic Fee of 0.1 ZLB.
Day 60	The portfolio drops to 950 USDT, below the high-water mark of 1,050 USDT. No performance fee is charged, but the Basic Fee is still applied.
Day 90	A deposit of 500 USDT increases the portfolio to 1,450 USDT. The high-water mark is adjusted to 1,550 USDT. No performance fee is charged, but the Basic Fee is applied.
Day 120	The portfolio gains 50 USDT (1,600 – 1,550). The performance fee is 25% of 50 USDT = 12.5 ZLB, which is charged in addition to the Basic Fee of 0.1 ZLB.
Day 150	A withdrawal of 300 USDT reduces the portfolio to 1,300 USDT, and the high-water mark is adjusted to 1,250 USDT. No performance fee is charged, but the Basic Fee is still applied.
Day 180	The portfolio gains 150 USDT (1,400 – 1,250). The performance fee is 25% of 150 USDT = 37.5 ZLB, which is charged in addition to the Basic Fee of 0.1 ZLB.

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OFF Fee

• Users are allowed two free OFF events per day.

• Starting from the third OFF event on the same day, a fee of 5 ZLB per OFF event is charged.

• The OFF Fee is not included in the calculation of the Minimum ZLB Balance.

Number of OFF Events	OFF Fee (ZLB)
1st and 2nd OFF	Free
3rd OFF onward	5 ZLB per event

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Penalty Fee

The Penalty Fee is triggered when a user interacts with their linked Binance account in a way that disrupts ZOLBO’s operations. Manual interactions interfere with ZOLBO’s ability to manage the portfolio and automate trading. The Penalty Fee is the greater of:

• 1% of assets under custody (ZLB)

• 5 ZLB

This ensures that smaller accounts are still subject to a minimum fee, while larger accounts are charged proportionally.

Fee Type	Description	Amount
Penalty Fee	Triggered by interactions with Binance causing ZOLBO OFF	Greater of 1% of assets under custody or 5 ZLB

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Minimum ZLB Balance

To ensure ZOLBO remains active and uninterrupted, a Minimum ZLB Balance is required to cover all potential fees. This includes the Basic Fee, Performance Fee, and Penalty Fee. The OFF Fee is not included in the calculation of the Minimum ZLB Balance.

Formula:

$$\text{Minimum ZLB Balance} = f_p \times (R_{\text{max}} \times A) + f_b + \text{Penalty Fee}$$

Where:

• $A$ = Assets under custody (ZLB)

• $R_{\text{max}}$​ = Maximum Expected Daily Return Rate (0.5%)

• $f_p$​ = Performance fee rate (25%)

• $f_b$​ = Basic fee (pro-rata on 0.1 ZLB/day)

Example Calculation:

For 1,000 USDT in assets under custody:

Component	Calculation	Result
Daily Profit	$0.5\% \times 1,000 = 5 \space USDT$	5 USDT
Performance Fee	$25\% \times 5 = 1.25 \space ZLB$	1.25 ZLB
Basic Fee	$0.1 \, ZLB$	0.1 ZLB
Penalty Fee	$1\% \times 1,000 = 10 \space ZLB$	10 ZLB
Total Daily Fees	$1.25 + 0.1 + 10 = 11.35 \space ZLB$	11.35 ZLB

Thus, the Minimum ZLB Balance required for one day’s worth of fees is 11.35 ZLB.