Net-of-Tax Performance Metrics

Net-of-tax performance metrics provide a realistic view of investment success by accounting for the impact of taxes on returns. Gross returns are often misleading in the context of high-turnover derivative strategies because they do not reflect the true amount of money an investor keeps.

By using net-of-tax metrics, investors can accurately compare different strategies and asset classes. This metric is essential for institutional reporting and for making informed investment decisions.

It forces a focus on long-term sustainability rather than just short-term gross profits. Incorporating tax into performance measurement is a sign of a mature and sophisticated investment approach in the crypto-asset space.