- Do DARWIN Providers need to be regulated?
- Can I create a Darwin from a demo or a linked account?
- What requirements does a trading account have to meet in order to be eligible for creating a DARWIN?
- How long does it take to get to Rookie level?
- How are DARWIN Providers rewarded?
- How is the Performance Fee calculated?
- How can I be certain that all performance fee calculations are done correctly and that I'm informed of all the AuM invested in my DARWIN?
- How much does Darwinex get paid for each DARWIN?
- Are performance fees paid out if investors sell their investment in a Darwin before their quarter ends?
- Do DARWIN Providers get rewarded for the commissions they generate?
- What DARWIN information is available to traders and investors?
- Does a DARWIN Provider know the volume invested in his DARWIN?
- What info do investors see from my trading strategy?
- My trading results for the first few weeks were not transferred to my DARWIN. Why is this so?
- Can I delete my Darwin?
Do DARWIN Providers need to be regulated?
No, they don’t.
DARWIN Providers do NOT manage investors’ capital themselves - they contribute their intellectual property to Darwinex in exchange for a 20% performance fee on profits generated for investors.
What requirements does a trading account have to meet in order to be eligible for creating a DARWIN?
Listing DARWINs is only available to Darwinex live MT4 accounts with level Rookie or higher. The minimum level can be reached in approx. 1 month if trading every day.
Accounts with more than 50% of the trades shorter than 10 minutes are not eligible to list a DARWIN due to their low scalability. Once this % decreases below 50%, the account will automatically become eligible for creating a DARWIN.
Accounts containing DAX trades are not eligible for creating a DARWIN either. This is due to different opening hours; right now we can't guarantee that DAX trades get replicated under optimal conditions. We are working so that they can in the future, though.
How long does it take to get to Rookie level?
All strategies with 0.5 D-Periods experience and 21 market days are classified as Rookie - and all other investment attributes are not graded until this threshold is reached.
1 D-Period roughly amounts to 1 month of full-time trading - which means that different strategies accrue D-Periods at different speeds, depending on their market exposure.
How are DARWIN Providers rewarded?
DARWIN Providers receive 20% performance fee on the quarterly profits achieved for investors in their DARWIN(s).
How is the Performance Fee calculated?
It is calculated on a “High Watermark” basis (investors’ returns at the end of the quarter is compared to the returns made before the current quarter).
For the avoidance of doubt, Performance Fees are calculated as follows:
0.20 * (Investor’s net profits since the date the Investor first invested in the DARWIN Provider’s DARWIN(s), including the profits of investments that remain open) – (sum of Performance Fees charged by the DARWIN Provider to the relevant Investor in previous quarters).
How can I be certain that all performance fee calculations are done correctly and that I'm informed of all the AuM invested in my DARWIN?
DARWIN Providers can check the updated list of investors in their DARWIN from their private interface.
How much does Darwinex get paid for each DARWIN?
Darwinex charges investors a 20% quarterly performance fee, and passes it entirely on (100% of the total) to DARWIN providers.
Are performance fees paid out if investors sell their investment in a Darwin before their quarter ends?
If investors sell their investment in a Darwin before their quarter ends, performance fees get retained by Darwinex and are paid out to traders if, on quarter end, they still apply.
If investors sell their investments in a Darwin with a profit before their quarter ends and then invest in the same Darwin again so that by quarter end they actually do not make any profit, investors get back the performance fee that were previously retained from them. Darwin Providers do not receive any performance fees in these cases as they did not generate any profit for these investors for the quarter in question.
Quarters are the standard investment periods when investing in Darwins and Darwin Providers get paid on quarterly results.
Do DARWIN Providers get rewarded for the commissions they generate?
No, DARWIN Providers are rewarded on profits only.
What DARWIN information is available to traders and investors?
DARWIN Providers can additionally check their investor following at their private Dashboard.
Please note that at no point is enough information furnished for investors to independently replicate the traders' strategies.
Does a DARWIN Provider know the volume invested in his DARWIN?
In the section 'Income' -> 'Performance Fees', DARWIN Providers know at all times the current investment and the current Open P&L in their Darwin(s), both globally and for each investor separately.
For each investor, DARWIN Providers know their username, current investment, when their quarter ends, their P&L, their high watermark, their paid fees and their pending fees.
Further, DARWIN Providers also know the open date and price and the close date and price of each investor in their Darwin.
What info do investors see from my trading strategy?
DARWIN’s live market value is quoted at the DARWIN Exchange but live trades by the underlying strategy are NOT disclosed.
My trading results for the first few weeks were not transferred to my DARWIN. Why is this so?
This is so because the period of the strategy needed to get to Rookie level and be able to create the DARWIN is not part of the Darwin itself. The DARWIN's graphs start after this initial period.
Can I delete my Darwin?
Yes. You may close your Darwin by going to 'Trading accounts' -> Screw icon in the row of the corresponding account -> 'Delete Darwin'.
This will trigger a process that will result in your Darwin getting closed in the following 24 hours. When this happens, the Darwin Provider and any investor with open investments in the Darwin, will receive a notification.
Please note that closing a Darwin is like deleting it (only the Darwin, not the underlying trading account) and that closed Darwins CANNOT be restored.