3.38.1.1 Contingent Liquidation

This topic provides information on contingent liquidation.

The contingent liquidation method is an arithmetic method applied to subscriptions made at a price below the current HWM plus hurdle rate.

The contingent liquidation process helps the investor avoid paying unfair performance fees, in case the fund recovers in price. This mechanism ensures that the investor pays the same rate of performance fees as all other investors for any gain in value.