Percentage Allocation Management Module (PAMM) General Rules
PAMM is a trading model wherein a trader (the “Money Manager”) generates profits for accounts owned by other individuals. Account owners (the “Investors”) deposit funds into the Money Manager’s trading account with the expectation of receiving a proportionate share of the profits derived from the Money Manager’s trading activities. These PAMM General Rules, together with the Client Agreement and any other applicable agreements or policies, govern the relationship between the parties. By registering as either a Money Manager or an Investor, the Client acknowledges and affirms that they have thoroughly read, understood, and accepted all relevant agreements and terms related to the PAMM service.
1. Registration
1.1 Money Managers:
1.1.1 Registration Process: Money Managers may register through the PAMM Portal using their own trading account.
1.1.2 Account Types: All Investor and Manager Accounts must be of the STP or ECN type. Other account types (such as but not limited to CNT or MINI) require prior approval from ZFX.
1.1.3 Automatic Account Creation: Upon successful registration, a new trading account for the Money Manager will be automatically created, enabling investment and trading activities.
1.2 Investors
1.2.1 Registration Options: Investors may register either through a private offer link issued by a Money Manager or by selecting a public offer from the list of available offers displayed on the official Investor registration webpage.
1.2.2 Participation: Investors may follow one or more Money Managers by submitting “join”, “deposit”, or “withdrawal” requests. Such requests must be confirmed by ZFX admin.
1.2.3 Investor Monitoring: When an Investor submits a join/deposit/withdrawal request, the ZFX admin will be notified within the PAMM portal.
1.3 Binding Agreement: By submitting a registration request to ZFX or completing the self-registration process through the PAMM portal, the Client shall be deemed registered to have participated in PAMM and bound by these General Rules.
1.4 Acceptance of Terms: Upon completing the registration process, the Client shall be considered to have accepted all applicable PAMM General Rules.
1.5 Limited Power of Attorney: Both Investors and Money Managers agree to the terms of the limited power of attorney as outlined in Clause 10 (“Attorney”).
1.6 Registration Capacity Limitation: ZFX reserves the right, at its sole discretion and without prior notice, to impose or modify limitations on the number of Money Manager registrations it accepts, based on technical, operational, or business considerations.
1.7 Offer Participation Limitation: For operational integrity and risk management purposes, an Investor may participate in a specific investment offer from a Money Manager only once. While the Investor may join offers from different Money Managers, subsequent investments in additional offers by the same Money Manager is restricted.
2. Performance Fee
2.1 Accrual and Basis of Performance Fee: Performance fees under the PAMM system shall be calculated based on the equity of the Investor’s trading account as of the end of each trading interval (the “Rollover Period”). For the purposes of this provision, “equity” shall mean the total value of the Investor’s account, inclusive of both realized gains or losses and unrealized gains or losses (the “floating PnL”). Such equity shall constitute the basis for the calculation of any applicable performance fees.
2.2 Setting of Fee: The Money Manager shall have the discretion to set their own equity-based performance fee, subject to a maximum cap of 50%. In addition, upon request and subject to ZFX’s approval and required system configuration, the Money Manager may also establish other fee types, including but not limited to return-based performance fees, withdrawal fees, deposit fees, entry fees, and agent commissions.
It is the sole responsibility of the Investor to review and understand all applicable fees as disclosed in the investment offer prior to participating in a Money Manager’s investment program.
2.3 Calculation of Equity-Based Performance Fee: Performance fees shall be subject to the High-Water Mark (“HWM”) principle, pursuant to which the Money Manager shall be entitled to performance fees only on net new profits that exceed the highest previously recorded Equity level, as adjusted for any deposits or withdrawals made by the Investor.
2.4 Profit Requirement: The Money Manager will only receive the performance fee if the trading results are positive at the end of the rollover period.
2.5 Negative Performance: In the event that trading results for a given billing period are negative, the Money Manager shall not be entitled to receive a performance fee for that period. Any such loss shall be carried forward to subsequent billing periods, and the Money Manager must cover it.
2.6 Rejoining Money Manager: If an Investor unfollows and later rejoins a Money Manager, only the current subscription period will be considered for performance fee calculations. Any HWM levels recorded during prior subscription periods shall be deemed null and shall not be applied.
3. Money Manager Obligation
3.1 Trading Decisions: The Money Manager is solely responsible for all trading decisions within the PAMM Program. The Money Manager shall act in good faith and exercise due diligence in managing Investor funds in accordance with the investment strategy outlined in the relevant offer.
3.2 Performance: The Money Manager agrees to perform their duties diligently and ensure that all actions, including trading, withdrawals, and other financial transactions, are executed in the best interest of the Investors, subject to the applicable terms and conditions of the PAMM Program.
3.3 Compliance with Rules: The Money Manager must adhere to the rules and regulations established under the PAMM Program, including, but not limited to, maintaining proper account balances, and following the risk management procedures defined by ZFX.
3.4 Communication with Investors: The Money Manager must provide investors with clear and transparent offer conditions, outlining all relevant terms and features of the investment offering.
3.5 Disclosure of Conflicts of Interest: The Money Manager must promptly disclose any conflicts of interest that may arise during the course of managing Investor funds and take necessary actions to resolve such conflicts in accordance with the industry’s best practices.
4. Investor Obligation
4.1 Investment Commitment: By participating in the PAMM Program, the Investor agrees to invest funds into the Money Manager’s trading account, with the understanding that their funds will be managed in accordance with the Money Manager’s investment strategy.
4.2 Deposit and Withdrawal Requests: The Investor is responsible for initiating any deposit or withdrawal requests through the PAMM portal. All requests are subject to the approval of the ZFX Admin and must comply with the specified thresholds and procedures.
4.3 Monitoring of Investments: The Investor is responsible for monitoring their investment and performance through the PAMM portal. While the Investor may request withdrawals or changes to their investment, they acknowledge that all trading decisions and account management are solely within the purview of the Money Manager.
4.4 Fees Payment: The Investor acknowledges that performance fees are payable based on the profits generated in the trading account, as determined by the Money Manager.
4.5 Compliance with Terms: The Investor agrees to comply with all applicable terms and conditions set forth in the PAMM Program, including any rules set by the Money Manager.
5. Deposits and Withdrawals
5.1 Thresholds for Deposits and Withdrawals: The Money Manager reserves the right to set a minimum threshold for deposits, and initial investments. However, there shall be no limit on the total aggregate deposit amount from all Investors.
5.2 Deposit Process: Investors may deposit funds into their accounts at any time and submit an investment request to join a Money Manager’s offer. Funds will only be considered part of the investment once the ZFX admin accepts the request.
5.3 Withdrawal Process: Investors may request withdrawals at any time. Once the request is approved by ZFX admin, the funds will be processed back to the Investor’s MetaTrader account after the rollover period.
5.4 Equity Preservation and Withdrawal Limitations:
a) Investor Withdrawal Limitation: Owing to system features and constraints, an Investor shall be prohibited from submitting a withdrawal request in any of the following circumstances:
(i) One or more prior withdrawal requests have already been approved and are pending rollover; and/or
(ii) The aggregate effect of the new request combined with the approved but unprocessed withdrawal requests would result in the Money Manager’s equity falling below zero.
b) Rollover Safeguard: During the rollover process, any previously approved withdrawal request shall be automatically declined if its execution would result in the Money Manager’s equity falling below zero.
6. Rollover
Frequency and Process: The rollover process shall generally be executed automatically at hourly intervals. Notwithstanding, it may also be manually initiated by ZFX Admin at their discretion.
7. Leverage
The leverage of the Money Manager’s Owner Account will be replicated in the Trading Account upon registration. Automatically created PAMM accounts will inherit all parameters of the Owner account. PAMM accounts will be established within the same group and on the same server as the Owner account.
8. Risk Management
8.1 Loss Threshold Level: A threshold level of 10% will apply for the automatic closure of investments. In the event that the absolute losses exceed the established threshold, the investment shall be automatically closed. The Relative-Loss-Deposit-Net mode is activated, such that the loss threshold is calculated as a percentage of the net deposit, which includes both deposits and withdrawals combined.
8.2 Rounding Risk Factor: The rounding risk factor is a numerical value by which the system divides the minimum lot size. In the event that the result of this division exceeds the calculated volume for a partial closure, the system shall cancel the partial closure. Conversely, if the result is less than or equal to the calculated volume, the system shall proceed to execute a partial closure in the amount of the minimum lot size.
For example, the calculated partial close is 0.06 and the minimum lot is 0.1. We are dividing the minimum lot with 5 (0.1 / 5 = 0.02), then system compares 0.06 > 0.02 and in this case it will make a partial close of minimum lot = 0.1
8.3 Distribute Floating PnL Enable: The system will allow the distribution of floating PnL.
9. Cancellation Terms
9.1 Unfollowing and Withdrawal: An Investor may unfollow a Money Manager’s offer or withdraw investment funds back to their MT account by submitting a request via the PAMM portal.
9.2 Approval Process: All such requests require approval by ZFX admin. Upon approval and the completion of the rollover period, the PAMM system will adjust the trading account balance and reduce the volume of open trades to avoid margin calls or stop-out scenarios.
9.3 Service Termination: Notwithstanding the provisions of the foregoing clauses, ZFX reserves the right to terminate the provision of the PAMM service to any Client at its sole discretion, without prior notice.
10. Attorney
10.1 Appointment of Attorney: By accepting the PAMM General Rules and submitting an investment request to a Money Manager, the Investor appoints the Money Manager as their Attorney, granting the Money Manager authority to act on their behalf in the following capacities:
a) Conducting trading transactions on the instruments offered by ZFX.
b) Receiving a fixed percentage of net profits as a performance fee.
c) Acting on behalf of the Investor in providing instructions, orders, receipts, and other acts as required under any agreement with ZFX.
d) Receiving all relevant information from ZFX related to the Investor’s transactions.
e) Taking any actions deemed desirable by the Money Manager in executing transactions.
10.2 Payment of Charges: The Investor directs ZFX to pay the Attorney the prescribed charges until a notice to the contrary is received.
10.3 Ratification of Actions: The Investor agrees to ratify and confirm any actions taken by the Money Manager in good faith, within the scope of the limited power of attorney.
10.4 Governing Law: This limited power of attorney shall be governed by and construed in accordance with applicable local laws.
10.5 Termination of Power of Attorney: The limited power of attorney shall terminate once a cancellation request has been approved as per Clause 9 (“Cancellation Terms”).
11. Risk Disclosure
11.1 Acknowledgment of Risk: The Investor acknowledges and accepts the inherent risks associated with participation in the PAMM Program, including the potential for significant financial loss, including loss of principal, commissions, and other related expenses.
11.2 Limitation of Liability: The Investor agrees that ZFX shall not be held responsible for any trading losses incurred through the PAMM Program.
11.3 Money Manager Responsibility: All trading decisions within the PAMM Program are made exclusively by the Money Manager. ZFX serves solely as a facilitator, providing the software that executes the Money Manager's instructions. ZFX shall not be held liable for any claims made by the Investor regarding the Money Manager's failure to adhere to the Investor’s recommendations or instructions.
11.4 Exclusion from Program: ZFX reserves the right, at its sole discretion, to exclude any individual from participating in the PAMM Program.
11.5 System Limitations: The Money Manager and the Investor acknowledge that certain operational limitations may exist within the PAMM system, which are due to technical constraints and are beyond the control of ZFX. These limitations may impact on certain functionalities or configurations within the platform. Additionally, ZFX reserves the right to modify system settings or features at any time, without prior notice. ZFX shall not be held liable for any consequences arising from such system limitations or changes, and both parties are advised to take these constraints into consideration when participating in the PAMM Program.