Permanent allocations

 

Permanent allocations

A permanent allocation allows your DARWIN to receive a non-expiring notional allocation of €100,000.

Depending on the option selected, the allocation can either be received immediately after purchase or after your DARWIN reaches a selected return target from the moment the feature is purchased.

It is important to note that the return target is based on the performance of your DARWIN, not on the manual trading account linked to it.

When can I purchase a permanent allocation?

You can purchase a permanent allocation at any time, provided that the following conditions are met:

• The calibration stage has been completed.
• The DARWIN has already been created.
• The DARWIN has no open trades, or if it has open trades, the underlying markets of those trades must be open.

In practice, the purchase option will only be unavailable if the DARWIN has not been created yet, or if there are open trades whose underlying markets are currently closed.

Please note that the option is disabled between 17:00 and 18:00 New York time, in order to avoid periods of higher volatility.

You can find the option in your account settings, under:

Payments → Subscriptions

  

What permanent allocation options are available?

There are three available options:

Target return	Price EUR	Price USD
None — instant allocation	€1,795	$1,995
5%	€995	$1,095
10%	€535	$595

The higher the return target, the lower the price of the service.

Types of permanent allocation

There are two types of permanent allocation:

Instant permanent allocation

This option does not require a return target.

The permanent allocation is obtained automatically after purchase.

When purchasing an instant permanent allocation, the DARWIN quote used for the allocation is the quote at the close of the current minute once the purchase has been completed.

Return-based permanent allocation

With this option, the allocation is obtained once your DARWIN reaches the selected return target from the moment of purchase.

For example, if you purchase the 5% target option, your DARWIN will receive the permanent allocation once it reaches a 5% return from the quote at the time of purchase.

If you choose the 10% target option, your DARWIN will need to achieve a 10% return from the quote at the time of purchase before receiving the allocation.

The target return is calculated based on the DARWIN’s immediate quote after purchasing the permanent allocation.

Can credits be used to pay for a permanent allocation?

Yes.

Credits received through member-get-member codes or unwithdrawn performance fees can be used to pay for a permanent allocation.

How can I track the progress towards the target return?

Once the purchase has been completed, you will be able to see:

• The DARWIN quote at the time of purchase.
• The current DARWIN quote.
• The target quote required to receive the allocation.
• A progress bar showing the progress towards the selected target.

Can I still participate in DarwinIA?

Yes. Permanent allocations are independent from DarwinIA allocations.

Your DARWIN can still participate in DarwinIA after purchasing a permanent allocation, and you can still earn performance fees from DarwinIA allocations.

The permanent allocation and DarwinIA allocations are treated separately, so performance fees are calculated and paid separately for each one.

Can I lose the permanent allocation?

A permanent allocation does not expire and there are no ongoing requirements to keep it.

However, if your subscription is restarted, you will lose the purchased option to receive the permanent allocation.

If the allocation had already been received, restarting the subscription would also result in losing that allocation.

How do performance fees work on permanent allocations?

Performance fees on permanent allocations work in a similar way to DarwinIA performance fees.

Once the allocation has been received, performance fees are calculated at 15% of the DARWIN’s performance over the permanent allocation.

They are calculated and paid every 3 months from the date on which the allocation was received, using a High-Water Mark criterion at each quarterly calculation date.

Example

Suppose you purchase the 10% target option when your DARWIN has a quote of 110, equivalent to a 10% return since inception.

Since the selected target return is 10%, the permanent allocation would be granted when your DARWIN achieves an additional 10% return from the purchase point.

In this case, the required quote would be:

110 × 1.10 = 121

This means the permanent allocation would be received when the DARWIN reaches a quote of 121.

If the allocation is received on 1 January, the first performance fee calculation would take place 3 months later, on 1 April.

If the DARWIN achieves a 10% return during that period, the performance fees would be:

€100,000 × 10% × 15% = €1,500

The same process would then be repeated every 3 months.