20% Performance Fees | Darwinex
How it works
Traders can opt in to access investor capital indirectly under the coverage of Darwinex’s FCA asset management license.
For this, Darwinex transforms traders’ trading strategies into a new asset, a “DARWIN”. The DARWIN replicates the trader’s strategy, entering the markets when the traders enters it but with a risk management defined by Darwinex’s algorithms.
Thus, all DARWINs trade with the same risk level, a monthly VaR of 10%.
This risk management by Darwinex algorithms is entirely independent from that of traders. This enables compliance with regulatory requirements thus ensuring that traders can get paid performance fees from our platform’s investors.
How Performance Fees Work
20% Performance Fees
DARWIN Investors pay 20% performance fees from their profits. Darwinex collects the fee and pays it entirely to the trader.
Performance fees get paid quarterly on a High-Water Mark basis. An Investor’s first investment in a DARWIN marks the effective start date of the quarter investing in that DARWIN.
Traders are provided a tool that enables them to know individual investments of each investor and when their quarters end.
Darwinex traders have so far been paid in excess of $2 million in performance fees. This information is public and is updated daily on our website.