I would like to start a small hedge fund which have some investors. the investors are mainly friends and family members. I know the standard fee structure in this industry is 2% for management fee, and 20% for high water performance fee. But in my case, since the investors are friends and family members, I would not like to sour the relationship in case of losses; on the other hand, they can not afford to lose much of their savings. As such, I would propose a reimbursement-based fee structure. 1) I will reimburse 50% of there loss.no management fee. how much should I charge for performance fee? 2) I will guarantee 5% return annually. no management fee. how much should I charge for performance fee? many thanks.