The “fees” are included in the cap you mentioned. You can’t make more than 10.5% per year which means the insurance company is pocketing the rest if the market goes up.
Personally, I would stay away from products like this. If you are interested in annuities, the lowest fee products are generally SPIAs, DIAs, and MYGAs.
That isn’t a recommendation, just information you might find helpful.
Stan the Annuity Man’s website explains the difference between all these products and their fee structure, if you want to learn more.