DARWIN Providers receive 20% performance fee on the quarterly profits achieved for investors in their DARWIN(s).
Investors have their own quarter end with each DARWIN depending on the date of their first investment. Successive investments by the same investor into the same DARWIN will not alter the date the investor's quarter ends.
How is the performance fee calculated?
It is calculated on a “High Watermark” basis (investors’ returns at the end of the quarter is compared to the returns made before the current quarter).
For the avoidance of doubt, performance fees are calculated as follows:
0.20 * (Investor’s net profits since the date the Investor first invested in the DARWIN Provider’s DARWIN(s), including the profits of investments that remain open) – (sum of Performance Fees charged by the DARWIN Provider to the relevant Investor in previous quarters).
Are performance fees paid out if investors sell their investment in a DARWIN before their quarter ends?
If investors sell their investment in a DARWIN before their quarter ends, performance fees get retained by Darwinex and are paid out to traders if, on quarter end, they still apply.
If investors sell their investments in a DARWIN with a profit before their quarter ends and then invest in the same DARWIN again so that by quarter end they actually do not make any profit, investors get back the performance fee that were previously retained from them. DARWIN Providers do not receive any performance fees in these cases as they did not generate any profit for these investors for the quarter in question.
Quarters are the standard investment periods when investing in DARWINs and DARWIN Providers get paid on quarterly results.
Do DARWIN Providers get rewarded for the commissions generated by investors in their DARWIN?
No, DARWIN Providers are rewarded on profits only.
Do DARWIN Providers know the volume invested in their DARWIN?
DARWIN Providers know at all times the current investment and the current Open P&L in their DARWIN(s), both globally and for each investor separately.
For each investor, DARWIN Providers know their username, current investment, when their quarter ends, their P&L, their high watermark, their paid fees and their pending fees.
Further, DARWIN Providers also know the open date and price and the close date and price of each investor in their DARWIN.