A performance fee rate is decided by a strategy provider when making a strategy, and it sets the amount of performance fee payable by investors if the investment turns profitable.
The performance fee rate can be set to 0%, or increments of 5% up until 50%: 0%, 5%, 10%, 15%, etc. The performance fee rate on a strategy is set at the creation of the strategy, but can be changed later on.
When a performance fee rate is changed, it only affects new investments into that strategy. Existing investments remain at the performance fee rate that was set when they were opened.
We recommend following this link to know more about how the performance fee rate is set by a strategy provider.