# Understanding the Success Fee Mechanism

When a trading period concludes, you're only required to share a portion of the profit earned. 

## Delving into the High-Water Mark Concept

The high-water mark is a safeguard ensuring that users aren't burdened with performance fees for subpar results. More crucially, it ensures that users aren't charged performance-based fees multiple times for identical performance levels.

This concept serves a dual purpose:

1. **Protection for Users**: It ensures that users aren't charged repeatedly every time the SmartBot registers a profit. Moreover, it shields users from fees associated with underwhelming performance.
2. **Motivation for SmartBot**: The high-water mark acts as an incentive for the SmartBot to consistently deliver top-tier performance to qualify for its fees.

{% hint style="info" %}
In essence, the high-water mark represents the pinnacle value an account has ever achieved. It's a pivotal benchmark when determining the performance fees a user owes. The overarching goal is to ensure users pay fees that solely correspond to the profit the SmartBot generates between the initial point of entry and its zenith.
{% endhint %}


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