Burry earns no income from Scion Capital unless members' annual return exceeds 6% net of expenses.

Test: Scion Capital's 2001 fee terms. True: the offering documents or letters show that Burry or the manager received no management fee and that the performance fee or allocation applied only to annual returns above a 6% hurdle, net of expenses. Mostly true: the structure is the same but a minor detail differs, such as a slightly different way of calculating the hurdle, or expense reimbursement that is not income to Burry. Mixed: a hurdle existed but at a materially different rate, or applied only to some share classes. Mostly false: there was a performance hurdle, but a management fee or other income was paid regardless of performance. False: there was no hurdle, and fees were payable whatever the returns.

Set before the research began.

1. E1 A Series Of Michael Burry's Scion Value Fund Annual Letters HedgeFundAlpha · 1 February 2016 Own record

   “As you are aware, Scion Capital does not charge a quarterly asset-based fee and instead relies entirely on its performance as your manager.”

2. E2 A Series Of Michael Burry's Scion Value Fund Annual Letters HedgeFundAlpha · 1 February 2016 Own record

   “the Scion Value Fund;s net asset value increased 6.63% after expenses and contingent fee allocations.”

3. E3 Michael Burry: The Unlikely Billionaire Investor In Michael Lewis's Latest Book HuffPost · 2 May 2010

   “He charged his investors a fee just enough to cover the fund's expenses, and he made money only when investors' capital grew.”

An independent report (E4) says Burry charged investors only enough to cover the fund's expenses and made money only when their capital grew. That fits the claimed structure: no management fee, and income only from performance, with expense reimbursement not counted as income. Scion's own letter (E2) likewise says the firm charged no quarterly asset-based fee and relied entirely on performance. None of the evidence confirms the specific 6% net hurdle; E3 reports only a net asset value increase of 6.63% after expenses and contingent fee allocations [E3]. The structure is therefore supported, but the exact hurdle rate is not.