In order for Money Managers to earn money from PAMM Accounts, they would need to set up Fees in their Offers upon creating the Fund. In that regard, the Money Manager would need to amend the configuration of the Offer as well as editing the Fees according the Money Manager's needs.
Please look for the definition of each fee below:
Performance Fee
The Money Manager can set a fee for their knowledge in trading. With this fee set in place, the manager is able to gain a percentage of the profit from the trade.
This fee is able to have different layers of fees depending on the percentages set.
For example, in the example below, a 0-30% profit return will cost the investor 20%. If the profit return is 30% or greater, the investor will need to pay 35%.
Management Fee
The management fee allows the Money Manager to set a fee for overseeing the Investor's assets and dealing with them. A cut from the profit can be assigned to the Money Manager in relation to the number of funds given by the Investor or if it is a set amount. This fee usually decreases as the rate of investment increases. This fee can be charged either in percentage or in currency. This fee is charged on the configuration set.
In the example below, when the investor would deposit $0-500, a 30% fee is required. When the investor would deposit $500 or more, a 15% fee is required.
Deposit Fee
The Deposit fee is a fee that is applied whenever an Investor would like to deposit funds into the pool of funds. This fee is charged on initial and/or recurring deposits. This fee is charged immediately.
In the example below, $0-1000 would require a 5% fee, whereas deposits from $1000 would require a 3% fee.
