What rights does TARAZ create for the investor?

Most investor–manager disputes are about fees: “why did I pay a fee while the account was losing?” TARAZ resolves that dispute structurally.

Three structural rights

• The high-water right: the fee applies only to profit above the previous best — never to loss recovery.
• The escrow right: part of the fee stays with the platform until profit proves durable.
• The clawback right: on a breach of the committed rules, the escrowed part returns to investors.

Know the limit too

TARAZ creates the right to a fair fee, not compensation for capital losses. If the account lost money, a fee clawback does not return that loss.

The TARAZ page and the TARAZ guide.

Frequently asked questions

Are TARAZ rights identical on every account? The framework (HWM, escrow, clawback) is identical; the details (escrow share, duration) are in each account’s terms.

Is a manager without TARAZ a bad manager? No; it means the account is not settled under this structure. Whether this protective layer matters to you is your call.

What does TARAZ give the manager? Provable trust; a manager whose fee is clawback-able has evidence behind the alignment claim.

Are these rights identical across all accounts? The three-part framework — high-water mark, escrow, clawback — is TARAZ’s structure; but the details (percentages, timing, breach rules) are defined in each account’s terms text. So do not read “has TARAZ” as a generic label; read that account’s version.

Summary

A fair fee is a structural right, not a manager’s favour. Full structure: the TARAZ page.

The three structural TARAZ rights

• The high-water right: no fee from loss recovery
• The escrow right: part of the fee until profit proves durable
• The clawback right: on a rules breach
• These are fair-fee rights, not loss compensation
• Details are in each account’s terms

The TARAZ rights structure: See it.