DARWINs can be temporarily closed to new purchases under some conditions to guarantee an appropriate execution conditions for all investors
Execution conditions on a DARWIN for all investors replicating the DARWIN's trading ultimately depend on several factors. While currency impact should be a residual value that can be seen in the investment platform, divergence and the total amount of capital invested in the DARWIN are directly correlated values that may harm the overall investor return.
As a result, there are certain limits and the DARWIN provider can set to guarantee a healthy performance of it's investors.
Used capacity reflects how much free space there is still in the DARWIN to new investors below those limits.
Used capacity is defined as a value in percentage from 0 to 100, as the greater of either:
1. Current monthly divergence / maximum monthly divergence allowed.
2. Current investor's capital / maximum investor's capital allowed (if any*).
* The DARWIN provider can set up a maximum amount of capital to be invested.
A DARWIN will be open to new purchases unless it reaches 100% used capacity.
If a DARWIN gets closed to new purchases due to reaching 100% used capacity, it will not be open again until it decreases below 95% again.
Example
If the used capacity of a DARWIN is 60%, it means that there is a 40% of either divergence or investor's capital available at the DARWIN before it gets closed.
Let's imagine a DARWIN whose maximum admitted monthly divergence is -1% and the maximum investor's capital has been set to 8,000,000€. Given a current monthly divergence of -0.3% and 4,500,000€ of investor's capital, the used capacity would be the greater of:
1. - 0.3% / -1% = 30%
2. 4,500,000 / 8,000,000 = 56.25%
Then, the used capacity would be 56.25%, meaning there would be still be 43.75% free used capacity.
By default, the maximum monthly divergence allowed in a DARWIN is -1% and no limit in terms of total investor's capital.
However, the DARWIN provider can set a lower limit in terms of monthly divergence and top up the assets under management.
Historic used capacity
You can check the historic used capacity and capital invested in a DARWIN at "investors" tab, selecting "used capacity", where grey areas would show periods when a DARWIN has been closed due to reaching 100% used capacity: