Check me on this. I believe I have it right, but I could be wrong.

Subscription fee must be $125 and autotrade cost is calculated at $50.

Capital must be between $40K and $60K

Initially the $125 subscription will be a 0.35% drag per month or 4.2% per year on an account of $50,000

ASSUMING a strategy does well and stays certified and grows to $60,000 requiring it to scale down to $40,000.

The $175 is still applied to all previous months based on the new scaled down starting value, just like with other non Star strategies.

If the strategy started with $50,000 after scaling it will have â€śstartedâ€ť with $33,000 since $40K/$60K*$50K

Now instead of a 0.35% drag per month in the first month of the strategy it will be $175/$33,000*100% = 0.53% or 6.6% per year.

After scaling just twice the drag per year will be 9.9% which is roughly equal to the max drawdown allowed.

You can approximate the drag in any given year by simply saying each time you scale from $60K to $40K you increase your annual fee by a factor of 1.5 since 60/40=1.5.
Now this is a long way off for most strategies since most donâ€™t have to scale down that much since they quickly hit the 812.5% max drawdown. But I think it is important to take note of.