Understanding Zero capital allocations
- 07 Nov 2024
- 1 Minute to read
Understanding Zero capital allocations
- Updated on 07 Nov 2024
- 1 Minute to read
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Our vision
Capital allocations are notional (or virtual) allocations that come with a compensation commitment to the trader in the form of performance fees paid as a share of profits generated on such allocation. If the investment were real, we would need to be much more restrictive in the allocations and, therefore, would have to impose very complex conditions to obtain capital.
These allocations are a mechanism that we make available to traders to make the path towards building a reliable track record for investors more stimulating in the short term.
We consider a trader to have a reliable track record for investors when they reach two years of consistently achieving results. It is crucial to incentivize traders with healthy habits from the outset, to encourage a long-term capital management perspective and to avoid the temptation of engaging in risky and highly leveraged mechanisms, which are not recommended.
Zero is based on Darwinex technology. As an asset manager, Darwinex needs profitable traders for its own survival. For this reason, everything is designed to power traders who want to do things right and help them generate income in the long run.
DarwinIA seed capital allocations are made as an investment in your DARWIN. This allocation remains invested for 3 months in the case of DarwinIA SILVER allocations, or 6 months in the case of DarwinIA GOLD.
The allocation is not a prize, you will receive payments in concept of performance fees (15%) based on the profit obtained with the allocation.
Information available
You can check the capital that your DARWIN currently has under management from the Payments->Allocations section:
You may check different information about your DARWIN allocations, such as the total amount of funds, average entry quote (weighted average of the entrey quote on each allocation), quarter end date, etc.
On the other hand, if you want to check the allocations received in each month independently, you can do so from the "allocation" tab in the ranking:
For further information about why Darwinex exists and how its long-term path to investor capital works please read this letter from the Darwinex founders.
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