PAMM Account Example

To understand the setup and participants involved in a PAMM account, let's walk through an example.

• 1The Forex Broker (Vebson)
• 2Investors
• 3Money Managers (Fund Managers)

Now, let's consider three investors: Investor A, Investor B, and Investor C.

They aspire to trade the forex market using a PAMM solution and decide to collaborate. To make this possible, they each open individual PAMM accounts with Vebson, the forex broker. An experienced forex trader takes on the role of the Money Manager and becomes a Vebson PAMM Fund Manager. By doing so, the Money Manager aims to optimize their earnings through successful trades and earn a performance fee. Investors A, B, and C select this Money Manager as their Vebson PAMM Fund Manager to trade on their behalf.

Pooling Your Funds

• 1Investors A - $50,000
• 2Investors B - $35,000
• 3Investors C - $15,000
• 4Money Manager - Charges 20%

Let's assume that during the investment period, there is a 12.5% gain, resulting in earnings of $12,500. After deducting the performance fee of $2,500 (20% of $12,500), the remaining $10,000 is distributed among the participants based on their share of the pool.

Distribute Earnings based on Contributions

• 1Investors A - 50% ($5,000) of the net earnings
• 2Investors B - 35% ($3,500) of the net earnings
• 3Investors C - 15% ($1,500) of the net earnings

This example demonstrates the potential adVebsons of using a PAMM account. By pooling their funds, investors can leverage the expertise of professional traders and distribute earnings based on their respective contributions.