Gates, Fees, and Preemptive Runs, a paper published by the Federal Reserve Bank in New York, suggests that allowing the use of redemption fees or gates can actually cause preemptive runs. The paper suggests that investors who might otherwise wait and see how market events actually impact their investments in the absence of redemption fees or gates, could instead choose to redeem early and avoid a redemption fee. The paper explains that this behavior may occur because investors are concerned that they will lose access to their funds in a crisis, when they might most need their money. Therefore, the paper concludes that rather than being a solution, fees and gates may actually contribute to run risk.