> For the complete documentation index, see [llms.txt](https://documents.peakdefi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://documents.peakdefi.com/for-asset-managers/how-to-for-asset-managers.../rewards-and-punishments.md).

# Rewards and Punishments

## Rewards for good Trading

Positive Trades create Profits for the Fund and contribute to a positive cycle, which results in a commission of up to 15% for you (Depending on your Risk Threshold in this Cycle). 

In addition good Trades increase the Total Amount of Reputation Token and therefore the total share of the PEAKDEFI Fund you manage which affects the Total Commission you get. 

## Punishment for bad Trading

If your trade encounters a loss below 10% you will lose the normal amount of Reputation Token, whereas trades with more than 10% losses will lose a lot more Reputation Token as the losses increase. Trades with losses above 25% will lose all of the staked Reputation Token (for this Trade). This mechanism protects the PEAKDEFI Fund from heavy losses.