Yes though this is not advisable for first time and emerging managers where you should generally stick with industry norms.

The management fee is structured as the average of fees over the duration of the fund, which is normally 10 years. Depending on the LPA, managers may have the discretion to charge different amount per year. Most managers choose a waterfall starting at 3.5% in the first years and declining to 0.5% later on. This is designed to reflect the activity of investments and returns.

Yes, it can. However VC Lab advises you to stay with the regular 2% to keep the conversation away from the nitty gritty fund fees & focus the conversation with potential LPs on your thesis instead!