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F.A.Q.

FAQ about the PAMM service

  • General Information
    • 1. What is PAMM account

      PAMM account – is a special trade structure created as part of MetaTrader4 platform. It incorporates 50 trading account plus 50 or more Investment account(s).

      Trade on the PAMM account is carried out by Manager and profit gained from trading operations is distributed in proportion of the share made by each Investor into PAMM account. The minimum amount of investment is $10.

      Investor does not need to make trading decisions or arrange transactions – he/she just need to invest into a successful Manager. You also do not need to wait for a rollover to credit investment into account – investment funds start to operate immediately after the transfer of investments into account which is done in fully automated mode. As soon as funds are credited into PAMM account the module which controls PAMM account will automatically adjust the volume of transactions in accordance with the investment ratio and from this moment the rate of return in your investment account will be identical with the yield of the PAMM account into which you have invested money.

      Manager manages funds in the most efficient way, with no distraction on calculations and adjustment of the volumes of your investments. Manager does not even need to know how much money is invested in his PAMM account or when investors join or leave the account. All routine work is done in a fully automated mode by a module-manager. This eliminates negative psychological effect because Manager can see the same balance in the PAMM account and build up his/her Money Management solely on the basis of indications on the only trading account, just as it happens during normal trade. It easily allows you to trade in the automated mode using trading advisers, as there is no need to modify them. Procedure is the same as if trade is carried out on a regular trading account.

    • 2. General principles of system «Fiduciary Investment»

      Functional principles of fiduciary investment offered by LiteForex differ from those available on the market, as they incorporate advantages of both PAMM and LAMM technologies, and give opportunity to:

      • - Invest into account at any convenient time;
      • - Invest any amount starting from 10 dollars;
      • - At your request you can initiate Rollover, which will immediately commence automatically;
      • - Not to pay penalties for early withdrawal;
      • - Automated trading with the help of advisors without additional adjustment or recompilation of the executed code;
      • - Two-tier method to accrue Partner’s fees;
      • - Absence of risks associated with ‘Human factor” (which is especially important if there is 50 account for many investors.

      Module-Manager of the PAMM account considers all investment accounts, incorporated into PAMM account as a single whole. Although Manager conducts transactions on the Trading account, balance and funds of this account do not depend on the amount of investment. Thus, this eliminates a chance of Margin Call if balance of PAMM account decreases, it also rules out a chance of shortfall in potential profit if Investor with a large amount will join the account. At the moment when the balance of PAMM account changes, Module-Manager automatically adjusts the positions in proportion with the share of each Investor in the account.

      This approach helps to achieve clear correlation between the yield of the PAMM account and investment account. It also simplifies creation of an investment portfolio because there is no need to take into account the influence of some non-trading risks on the investment strategy.

    • 3. Interface between Manager and Investor.

      System of fiduciary management in the LiteForex was created based on results of extensive analysis of PAMM and LAMM technologies. We tried to take use of the best features and combine then into integrated system. It allows us to make the system flexible to meet all requirements of participants of the fiduciary investments: both Manager, Investor and Partner. A special feature is that Manager does not need to constantly adjust volume of transactions on PAMM account as trade is carried out on the account the balance of which does not vary with the change in the general account balance; now all routine work is carried out by Module-Manager in the automated mode. Module-Manager of PAMM account will automatically adjust the volume of the open positions at the moment of depositing to the account. The risk of Margin Call is excluded in this case, as trading system of Manager does not depend on the amount of funds on the general account any more, even if the largest investor suddenly decides to withdraw his/her investments. The main advantage for Investors is the absence of time limits either to join or leave the project and as consequence, there is no penalty for early withdrawal of investments. When investment is made into PAMM account, the funds are credited to the Investment account immediately upon crediting or internal transfer from personal account. In the same manner, withdrawal from Investment account is carried out as soon as the request is made through Investor’s Cabinet. All these together allow Investors to manage their investments in a flexible manner, saving them from excessive expectations of activity from Manager.

    • 4. How affiliate program works.

      PAMM-partner can have two types of earnings.

      First one is the reward for the Investor referred under the affiliate link. Its size is set by the Manager of PAMM account and measured in percent of the Manager’s profit, received from the funds of the investor. Investor’s account is added automatically to Partner’s affiliate group, if the account was registered under affiliate link. That is to say, if your referral becomes an investor of PAMM account, you automatically begin to receive the reward set by the project Manager.

      The second part of earnings is the reward which the Manager pays to the Partner for the promotion of his PAMM account. If the Manager assigns you as a Partner of his PAMM-project, you will receive the reward for the whole project: both for your referred Investors and for Investors who have joined the project themselves. The reward size in this case is also set by the Manager. In order to start the cooperation, the Partner needs to contact the Manager of the PAMM account using the special thread on the forum or using the contact details given by the Manager in account profile.

      The Investment account of the Manager gets into Partner’s referral group automatically, when you follow the affiliate link.

      For registration in PAMM-partner program you need to file an application from the client’s cabinet or by filling the short registration form at the web-site. After the approval of the application you will receive the notification by e-mail, containing a unique affiliate link and details of your commission accounts.

      If you are already participating in Internet-Partner program of LiteForex, you do not need to pass the additional registration for partaking in PAMM-partner program, because the same affiliate code is active for both programs.

    • 5. Publicity of PAMM account. Monitoring.

      When Manager creates PAMM account, he can choose if this account will be public (visible) for the potential investors or not.

      Publicity implies that account is displayed in the monitoring, and a branch is created at the Forum at forum.liteforex.org for the dialogue with potential investors.

      When account is created there are three options to display it:

      • 1. Do not hide the account.
      • 2. Hide the account.
      • 3. Hide account from all, except investors.

      In the first case, account will be public and will be displayed in the monitoring*; a branch will be created for a trader at Forum. In the second case a branch is not created, account is not displayed in the monitoring for anyone with no exceptions. This choice gives Manager an opportunity to check trading strategy by exploring functional facilities of the system.
      In the third case the account is not displayed in the monitoring; however monitoring is available for the clients who invested in this account in the Trader’s Cabinet. The branch in the Forum is not created. The choice of this option is preferable for those Managers who are going to attract a small number of Investors into their account and there is no need to be engaged in the public dialogue with clients at the Forum of the Company. The mode of display of the PAMM account can be changed at any time.

      If account is selected to be public, there is still an option either to hide or not hide trading transactions in the monitoring in order to protect against copying of the trading strategy. There are also 3 options:

      • 1. Do not hide.
      • 2. Hide transaction from all except investors.
      • 3. Hide transactions from all with no exception.

      If you have chosen the first or second option of displaying transactions, there is also a chance to install protected period within the interval of 5 minutes. If the interval has been chosen, open position will not be displayed in the monitoring at all, and update on closed transactions will be recorded in statistics only after a specified time interval.

      *Provided that at least $200 is deposited to the account. It’s a minimal amount of the first deposit for the Manager’s investment account, and it’s the condition under which the account can be displayed in the general monitoring.

    • 6. Share and value of share.

      Share indicates the ratio of Investor’s participation in PAMM account. Number of Investor’s shares will represent the percentage of funds which Investor owns in PAMM account. Amount of Investor’s income earned by Manager, is calculated in accordance with number of Investor’s shares.

      Value of share is an indicator showing profitability of PAMM account at a given time. It is calculated as follows:

      Value of share = Profitability + 100.

      When PAMM account is included in monitoring, value of the share equals to 100 USD.

      Value of the share can vary in the result of trading operations of manager. Value of the share does not depend on depositing or withdrawal of funds, crediting or withdrawal of credit funds to/from Investment accounts incorporated into PAMM account.

    • 7. Manager’s Offer.

      Manager’s offer is a parameter of the PAMM account which determines the amount of the carried interest for Manager, Manager’s Partner and Manager’s Partners.

    • 8. Trading interval and Rollover of PAMM account.

      Trading interval-is a trading period which starts at the moment of depositing funds into Investment account and finishes at the moment of the next Rollover.

      Rollover is a set of procedures initiated by Manager or Investor of the PAMM account and carried out by Company; it involves all members of PAMM account and ensures compliance with the terms of the offer by all participants. The amount of the fee for Manager and Partners is calculated during Rollover.

      There are two types of Rollover:

      • - Investor’s Rollover is designed to make settlement between Manager and Investor who initiated the account, between Investor’ partner and Partner of Manager. This Rollover can only be initiated by Investor who has Investment account.
      • - Manager’s Rollover is designed to make settlement between all participants of the PAMM account. This Rollover can only be initiated by Manager of PAMM account.
  • For Manager
    • 1. How to register as Trustee Manager.

      In order to register PAMM account you shall have a fully verified profile in the Client’s Cabinet.

      4 steps are required to register an account.

      • I. During the first step you can chose: type of the account, currency, leverage and telephone password which will be used in the future for your identification when you contact customer support in the Company.

      • II. During the second step you shall enter:
        • 1. The name of the account. It will be used while displaying account in the monitoring and to create topics at the Forum at ForexPeoples.com and LiteForex.com.

        • 2. Manager’s capital which is visible for Investors. The funds on the Investment account of Manager when displayed in the monitoring can be limited in value for the amount specified in this section. Manager can change this value only to a larger amount. Please note that Manager can receive the capital back if only PAMM account is liquidated.

        • 3. Automatic increase in the Manager’s capital will mean that Module Manager of PAMM account will automatically increase the value of visible funds of Manager, specified in Item 2, with the increase in the balance of the Investment account of Manager.

        • 4. Description of PAMM account. Here you can briefly describe (maximal number of characters is 1024) trading strategy or management of the aggregate capital of PAMM account. The above information will be also be placed in the first post of the topic at Forums ForexPeoples.com and LiteForex.com.

        • 5. Contact information. It may be used by potential investors to contact Manager. (E-mail address and telephone number indicated in the Clients’ Cabinet will be used).

      • III. During the third step you can choose the level of publicity for the PAMM account.
        • 1. Monitoring.
          • The date starting from which, the account will be displayed in monitoring. Bear in mind, that the account will be displayed starting only from the specified date and only if the amount of $200 or more is deposited into Investment account of Manager.
        • 2. Confidentiality.
          • - To show/not to show email, telephone number of Manager in monitoring.
          • - To notify/not to notify about new investments via SMS or/and email.
          • - To Display PAMM account in monitoring:
            • Do not hide;
            • Hide from all except investors of the account;
            • Hide from all including investors.
          • - Display of transactions carried out on PAMM account:
            • Do not hide;
            • Hide from all except investors of the account;
            • Hide from all including investors.
          • - Protected period of transactions, which are displayed in the monitoring, is 5 minutes or more. It means that closed transactions will be displayed in the monitoring only after specified period of time from the moment of closure. Open transactions will not be displayed at all.
        • 3. Commission on earnings on the account:
          • Manager’s fee is indicated in percentage of the amount of profit gained on the Investment account. Specified amount will be credited into Investment account of Manager after settlement with Investor’s Partners and Partners of Manager.

          • - Fee of Investor’s Partner.
          • Is indicated in percentage of Manager’s fee. The fee is credited to Partner’s account assigned to the Investment account of Investor.
      • IV. During the fourth step you will be asked to get familiarized and accept regulatory documents of Company and Service Regulations for Investment accounts. By pressing button “Open account” you confirm that you accept the offer. Two accounts will be opened for you after this. One of the accounts will be your trading account, which will be used directly for trading operations; another one is Investment account of Manager. Investor’s fees will be accrued to this account. Two letters will be forwarded to your email address, describing parameters of the opened accounts.

      • Thus, procedure of PAMM account registration is complete. Now you can begin trading operations on the Trading account without crediting any money. This can last until the moment of topping up of the Investment account of Manager for the amount of not less than $200 (or equivalent in other currency).
    • 2. What is Investment account of Manager.

      Investment account of Manager- is an account which is opened automatically for Manager, simultaneously with the creation of PAMM account and Manager’s capital is credited to this account.

    • 3. What is Manager’s capital.

      Manager’s capital – is amount of funds which Manager credits into Investment account of Manager to ensure guarantees before Investors.

      A PAMM account where Manager’s capital is less than 200 US dollars will not be displayed in the accounts table.

      Upon registration of PAMM account Manager specifies “Manager’s capital visible to Investors” – which is the maximum amount of Manager’s fund that potential investors can see in the monitoring. Manager can change the value of the “Manager’s capital visible for Investors” only to a larger amount.

      Be aware that when you make a request to withdraw money from Investment account of Manager, the amount which is left on the account shall be not less than specified value of Manager’s capital visible to investors.

    • 4. What documents are required for Manager’s verification?

      For verification of Manager the same documents are required as for the verification of Client’s profile in the Company. It means that client who went through full verification, can register PAMM account.

    • 5. How to adjust the volume of transaction when investment is made to PAMM account.

      You do not need to do it because the balance and funds of the Trading account do not depend on the deposit or withdrawal of the funds to/from PAMM account. Transactions are opened automatically on all accounts attached to the Trading account with the account of the rate of investment.

    • 6. What is Trading account of Manager? Where has $25.000 come from?

      Trading account of Manager – is an account which Manager uses to conduct trading operations. When PAMM account is registered, the amount of 25000 reference units is credited into the Trading account of Manager, which Manager uses for trading: he builds up trading strategy and money management based on 25000 USD which he has available. Manager cannot credit or withdraw money to/from Trading account. The ratio of investment for each investment account which is part of PAMM account is calculated as follows:

      Investment ratio=Funds of Investment account/Funds of Trading account

      Transaction conducted by Manager on Trading account will be duplicated on all accounts which are part of PAMM account, including Investment account of Manager with the volume equal to:

      Volume of Investment Transaction = Volume of Original Transaction= *Ratio of Investment.

      Transactions on Investment accounts are opened automatically, without Manager’s involvement.

      * In case the investment amount is less than 25 dollars, the calculation error can be 0.00001.

    • 7. Can I use trading advisors for trading on PAMM accounts?

      In order to trade on PAMM account you can use trade advisors without any additional modification, because actually trade is carried out on the same account. As for the increase and adjustment of the volumes, specially developed Module will take care of this.

    • 8. How to conduct Rollover? How often I need to do it?

      A Rollover is a procedure of settlement between Manager, Investors and Partners of PAMM account. A Rollover completes one trading interval and commences another one. If last trading interval finishes with profit, e.g. funds of the Investment account exceed the balance; Manager receives percentage of profit, gained on the Investment account, in accordance with settings of PAMM account. If funds of the Investment account are less or equal to the balance of the Investment account at the end of the trading interval, settlement between participants will not take place.

      A Rollover can be conducted on Manager’s request. In this case, transactions are closed on all accounts, including Manager’s account. The settlement is carried out among all participants involved in the PAMM account: Investors, Investors’ Partners, Manager’s Partners, and the Manager.

      Rollover can be performed only in the widget of the Manager’s Investment account in the section «General Information».

      A Rollover on a particular Investment account is carried out automatically if the Investor completely withdraws funds from the PAMM account.

      Therefore, you do not need to wait when Manager initiates Rollover in order to join PAMM account and make investments work. You just need to top up Investment account and funds will begin to work as soon as credit is made into Investment account. Manager does not need to distract his attention for calculations and adjustments to changes in the funds of PAMM account. Module, which manages PAMM accounts, will do all routine work automatically.

    • 9. What is liquidation of PAMM account?

      Liquidation of PAMM account- is a procedure of closure of PAMM account and transfer of the account to the archive.

      Rollover always forestalls closure of PAMM account* Only after settlement between all participants of the account all accounts included in PAMM account will be transfer into archive. Investments cannot be credited to the liquidated account any more. Liquidation can take place only when Manager confirms his intention by answering to a secret question in the Client’s Cabinet.

      * Transactions cannot be reopened if PAMM account is liquidated.

    • 10. Can I invest into my PAМM account?

      Yes, Manager can act as Investor of his own PAMM account. In this case fees to Manager and Partners of PAMM account will be calculated and accrued in the same way.

  • For investors
    • 1. How to register as Investor?

      In order to register as Investor you shall log in at the Client’s Cabinet and follow the link «Open Investment Account»

      To make Investment start working, you shall choose a Manager who will manage your money and you shall deposit funds into Investment account. Note that Investment will commence functioning as soon as funds have been deposited, without confirmation from the Manager. It means that if the manager has open transactions they will immediately be synced to your Investment account in the amount calculated as ratio of Investment as follows:

      Investment ratio = Amount of Investment / Equity of the Manager’s trading account

    • 2. What is Investor’s personal account?

      Investor’s personal account is created upon initial registration of Client as an Investor to facilitate transfers between Investment accounts, both active and archived, with the help of internal transfer system. You can top up the account or withdraw money from the account by using any of the payment systems represented on the site including bank transfer, with the exception of transfers from trading accounts/trading accounts Lite, Real, Floating spread.

    • 3. How to invest funds or withdraw investment.

      *Before you start these actions please log in at the Client’s Cabinet.

      The funds can be deposited into Investment account by using any of the payment systems, represented in the section «Deposit» of the site. You can also use internal transfer system for topping up if you have money available on your Personal account of Investor.

      Full withdrawal of the Investment from PAMM account. In this case, Investment account will be archived and further investments into this account will be impossible. Funds remaining after settlements with Manager will be transferred into Investor’s personal account.

      Manager’s Investment account is detached only in case the PAMM project is deleted.

    • 4. Balance and Funds of Investment account

      Investment account balance is an indicator showing an amount of money invested into a PAMM account. It is calculated as follows: Total amount of all deposits into the Investment account minus amount of withdrawals from Investment account plus increase of Funds on Investment account.

      The Investment account balance is equal to zero when opening an account and it may be increased by the deposit amount when the Investor deposits in the account, and/or by the finds increase amount upon the completion of a trading interval. The completion of a trading interval is indicated with a Rollover.

      The investment account equity shows the investment current state and is equal to the product of 1 share value and the number of shares the Investor possesses.

      The funds increase in the investment account for the last trading interval is calculated as follows:

      • - If the Investment account equity exceeds the Investment account balance, the funds increase equals the Investment account equity minus the Investment account balance;
      • - If the Investment account equity is less than the Investment account balance, the funds increase equals zero.
    • 5. What is share. Value of the share.

      Share indicates the ratio of Investor’s participation in PAMM account. Number of Investor’s shares will represent the percentage of funds which Investor owns in PAMM account. Amount of Investor’s income earned by Manager, is calculated in accordance with number of Investor’s shares.

      Value of share is an indicator showing profitability of PAMM account at a given time. It is calculated as follows:

      Value of share = Profitability + 100.

      When PAMM account is included in monitoring, value of the share equals to 100 USD.

      Value of the share can vary in the result of trading operations of manager. Value of the share does not depend on depositing or withdrawal of funds, crediting or withdrawal of credit funds to/from Investment accounts incorporated into PAMM account.

    • 6. How to limit trading risk of investment?

      In order to limit potential losses in investment, Investor can establish the system of Risk Level in percentage of the Balance of Investment account (initially from the deposited amount). If Funds are less or equal to the balance of the Investment account, multiplied by the level of risk in percentage and divided by 100:

      Funds of Investment account <= level of risk% * Balance of Investment account / 100

      Then Investment will be detached from PAMM account. Funds remaining on the account will be returned to Investor*.

      * Check of the level of risk established for all Investment accounts is carried out every 5 minutes. Therefore, actual value of funds on the account can be lower than indicated.

      You can also establish on your account a system of expected profit on investments in percentage of the balance of Investment account, so that investment will be detached automatically upon reaching desired level. If Funds of the Investment account are more or equal to the balance of Investment account multiplied by the level of expected profit in percentage and divided by 100:

      Funds of Investment account >= Level of expected profit% * Balance of Investment account / 100

      Then, investment will be detached from PAMM account and settlement with manager will be carried out. The funds remaining after that will be returned to Investor. After final settlements Investment account will be transferred to Archive*.

      * Verification of the expected profit, established for all Investment accounts is carried out every 5 minutes. Therefore actual value of funds on the account prior to settlements with Manager can be higher than indicated.

    • 7. Can I invest into several Managers?

      Yes, you can open several Investment accounts attached to different PAMM accounts of different Managers. You can achieve maximum efficiency of invested money with minimal risk if funds are skillfully distributed among several Managers.