Permanent allocations

A Permanent Allocation is a non-expiring notional allocation you can purchase for your DARWIN on the Darwinex Zero platform. Once granted, it entitles you to a 15% performance fee on the profits it generates, with no expiry date and no ongoing performance requirements.

Depending on the option selected, the allocation may be granted immediately or after your DARWIN achieves a target return of 5% or 10% from the moment of purchase.

The performance target applies to your DARWIN, not to your underlying trading account.

When can I purchase a Permanent Allocation?

You can purchase a Permanent Allocation when:

• The calibration stage has been completed and your DARWIN has been created.
• Your DARWIN has no open trades, or the markets underlying its open trades are currently open.

The purchase option will not be available when the DARWIN has not yet been created or when it has open trades in markets that are closed.

Which memberships can purchase Permanent Allocations?

Permanent Allocations are available exclusively to Darwinex Zero Standard Membership subscribers. Lite Membership does not include Permanent Allocations.

If you have Lite Membership, you can purchase Boosters to receive virtual capital allocations instead.

To avoid periods of high market volatility, purchases are also disabled between 17:00 and 18:00 New York time (ET/EDT). This window coincides with the US equity market close.

You can find this option in your account under:

Payments → Subscriptions

  

What Permanent Allocation options are available?

The available options depend on the allocation amount and the selected return target:

There are two types of Permanent Allocation:

Instant Permanent Allocation

No return target is required. The selected allocation is granted automatically after the purchase has been completed.

The allocation enters at the DARWIN quote recorded at the close of the current minute.

Target-based Permanent Allocation

The allocation is granted once your DARWIN achieves the selected return target from the quote recorded immediately after purchase.

A higher return target results in a lower purchase price. For example, a €50,000 allocation costs:

• €500 with a 5% target.
• €270 with a 10% target.

After purchasing a target-based allocation, you will be able to see the target quote and a progress bar showing how close your DARWIN is to reaching it.

Credits obtained through referral programmes or from performance fees that have not been withdrawn may be used to purchase a Permanent Allocation.

How is the target return calculated?

The target is calculated from your DARWIN’s quote recorded immediately after the purchase is confirmed. This starting quote is fixed at the moment of purchase and does not change.

For example, suppose your DARWIN has a quote of 110 when you purchase a Permanent Allocation with a 10% target.

The target quote would be:

110 × 1.10 = 121

The allocation would therefore be granted when the DARWIN reaches a quote of 121.

Can I still participate in DarwinIA?

Yes. Permanent Allocations are independent from DarwinIA.

Your DARWIN can continue participating in DarwinIA and earning performance fees from any DarwinIA allocations it receives.

Permanent Allocations and DarwinIA allocations are tracked separately, and their performance fees are calculated and paid independently.

Can I lose a Permanent Allocation?

A Permanent Allocation does not expire and has no ongoing performance requirements.

However, restarting your Darwinex Zero subscription will result in the loss of:

• Any active option to earn a target-based Permanent Allocation.
• Any Permanent Allocation already received.

How do performance fees work?

Once the allocation has been granted, you receive a 15% performance fee on the profits generated by the Permanent Allocation.

Performance fees are calculated and paid quarterly, measured from the date the allocation was first granted, subject to a quarterly High-Water Mark (HWM). A fee is only paid when the DARWIN's performance exceeds the previous quarter's HWM.

The calculation is:

Allocation × return above the High-Water Mark × 15%

Example

Suppose you purchase a €100,000 Permanent Allocation with a 10% target when your DARWIN has a quote of 110.

The allocation would be granted when the DARWIN reaches a quote of 121, representing an additional return of 10% from the purchase point.

Assume the allocation is granted on 1 January and the DARWIN then generates a further return of 10% by 1 April.

The performance fee would be:

€100,000 × 10% × 15% = €1,500

The next calculation would take place on 1 July, and every three months thereafter, subject to the applicable High-Water Mark. In this case, the HWM for the July calculation would be set at the quote level corresponding to the 10% return already credited.