If the manager operates a program with no investors and loses their own money, no harm is done. However, if the manager loses investor's risk capital, then that manager needs to recover the losses no matter what. In order to prevent platform abuse, we must have a Global High watermark system that tracks the losses that an investor occurs on every manager. If the investor exits one program to only join another program from that same manager, the losses from Program #1 MUST be carried over to program #2 .
If the platform does not incorporate a global high watermark system , then managers have the advantage over the investor. The manager can simply close the program and make a new one creating a clean slate.
Customer support service by UserEcho