Profit-fee agreements with investors: signing and settling

Why a recorded agreement?

Most disputes between managers and investors come down to one question: “Where exactly did this month's fee come from?” With a fee agreement on PAMM Iran, both sides have a written rule from day one and see a transparent calculation at the end of every period. No chat notes, no manual spreadsheets.

Making an agreement

1. In My accounts, press “Fees” next to the account.
2. Under “New agreement” enter: the investor's email or user ID on PAMM Iran, their account or sub-account number at the broker, the starting capital, currency, performance and management fee percentages, the settlement period (monthly or quarterly) and the start date.
3. Press “Send agreement”. The investor is notified, and the agreement becomes active only once they accept.

The percentages are pre-filled from the account's published terms; if you agreed something different with this investor, change them there.

How the fee is calculated

• High-water mark (HWM): at the start, the starting capital.
• Deposits and withdrawals: deposits raise the HWM and withdrawals lower it, so new money is never counted as profit and withdrawals are not losses.
• Performance fee: only on the part of the period-end value above the HWM.
• Management fee: an annual percentage, pro rata to the days in the period.
• After a fee: the HWM moves to the account value net of fees. After a losing period the HWM stays put, and no performance fee is due until the loss is recovered.

If the period-end value is above the adjusted HWM, only the eligible excess is multiplied by the agreed rate; if it is not above the HWM, that period’s performance fee is zero. Check the investor’s agreement for the rate and adjustment rules; this guide does not set a default.

Issuing a settlement

1. At period end, press “Issue the next settlement” on that agreement's card.
2. Enter the end date, the account value, the period's deposits and withdrawals, and the evidence (for example the broker statement).
3. The calculation goes to the investor, who confirms it or writes a dispute.
4. Once confirmed, collect the fee as agreed and press “I received the fee”.

If a dispute arrives, check the figures and use “Void to correct” to issue the right settlement. A new settlement cannot be issued while one is still open.

The platform's share

A percentage of the fee you actually received is PAMM Iran's share. The percentage on the day the agreement was signed stays fixed for that agreement and is shown on the fees page. Voided or zero fees carry no share.

Next: Connecting account data · Fees from the investor's side