Definition and features of the RAMM service
RAMM (Risk Allocation & Money Management) — an investment service that allows you to earn income in the financial markets by following the strategies of experienced traders and copying their trades. Professional traders, in their turn, profit by earning commission from using Strategies
Trader — an AMarkets’ client who has created at least one strategy in the RAMM service.
Investor — an AMarkets’ client investing in Traders’ strategies.
Client — an individual who performs trading operations in the platform as a Trader and/or Investor in accordance with this Regulation.
Investment account (Investment in a strategy) — a special account of the Investor, intended for copying trades of the selected Strategy. Strategy – is created by the Trader to send signals to attract investments.
Rating — a list of all RAMM strategies created by Traders based on a comparative assessment of their characteristics such as yield, number of investors, minimum age of a strategy. The rating allows other investors who use the RAMM service to see the statistics on different strategies and select a suitable strategy to invest in.
Specification — a list of RAMM parameters, trading conditions and requirements.
Investment profile — a number of parameters: Factor, Target and Protection that have to be set by the client when creating a new Investment.
Factor — copy multiplication coefficient, changes from 0.1 to 10. For example, factor = 2 means that positions will be copied with potential profit (and risk) two times higher than on the chosen strategy.
Target — the profit target of your investment. When the target is reached, trading is suspended until the investor confirms that he wants to continue trading. If he does, a new profit target will have to be set. Protection – investment protection level. It indicates which part of your investment you don’t want to lose if the result of the strategy is unfavorable. When this level is reached, trading is suspended until the investor confirms that he wants to continue trading. If he does, a new protection level will have to be set.
“Pause” mode — temporary suspension of trading and closure of all Investors’ open positions. When the pause mode is disabled and trading is resumed, all open positions from the RAMM strategy are reopened in the Investment at the current market prices. This mode is generally used for partial withdrawal of funds.
Trader’s fee — commission paid by the Investor to the Trader for using his strategy.
Company — the AMarkets company, which provides access to the RAMM service to its clients.
Netting — accounting system that allows the RAMM user to have one open position for each trading instrument at any given time. Oppositely directed positions at a single symbol are not allowed.
Thus, if you sell 1 lot of a financial instrument while simultaneously having an open buy position with a volume of 1 lot, this position will be liquidated.
If there is an open position for an instrument in the same direction, the volume of this position will be increased. Thus, if you open a new Buy position with a volume of 1 lot, while having another position of 1 lot on this instrument, the volumes of these two positions will be summed up. As a result, you will have one open position with a volume of 2 lots.
In this case, the opening price will be recalculated. The weighted average opening price is calculated by the following formula: (Price of the first trade* Volume of the first trade + Price of the second trade * Volume of the second trade) / (Volume of the first trade + Volume of the second trade).
1. General provisions
1.1. The RAMM service is intended for Investors and Traders. It allows Investors to earn in the financial markets by copying the strategies of experienced Traders. Traders make a profit by earning commission from their Strategies.
1.2. The Trader chooses the trading instrument and determines the order type in RAMM independently in accordance with his trading strategy, while the Investor can manually adjust capital protection levels by setting Factor, Target and Protection parameters.
1.3. When investing in a strategy, the funds remain in the Investor’s personal account. No one except for the Investor can withdraw or transfer funds from his account. The Investor gets full control of his Investment – he can monitor, adjust and close an Investment at any time.
1.4. All settlements and transfers in the RAMM platform, including withdrawals and accrual of the traders’ fees, are performed by the Company.
1.5. Claims of non-fulfillment or improper fulfillment of the Company’s obligations regarding client trading operations in the RAMM platform shall be carried out in accordance with the terms of the Customer Agreement.
1.6. The Company shall take all necessary security measures to protect the confidential information of Investors and Traders from the third parties.
2. Account opening
2.1. Before using the RAMM service, provided by the Company, the Client has to consider the offer and benefits of using this service. Before registering a RAMM account, the Client will need to confirm that he has read the terms of these Regulations on the company’s website and/or in his Personal area and accepts it terms.
2.2. Account opening is carried out from the Client’s Personal area at AMarkets.
2.3. Every Client registered in the RAMM service is an Investor.
2.4. A Client who has created at least one Strategy becomes a Trader. At the same time, he can also use the functionality of the Investor.
2.5. Every Client can open only one RAMM account and use it to create strategies or invest in an unlimited number of strategies.
3.1 Investor can select any Strategy to invest in from the Rating of strategies.
3.2. Before investing in the selected Strategy, the Investor sets a number of parameters of the Investment profile: Factor, Target and Protection. At the same time, capital protection limits risks but does not limit profitability.
3.3. During the first investing operation, the default values of an Investment profile are applied. Investor can customize the settings manually. These settings will be saved in the platform and applied to the next Investment.
3.4. To start investing, you need to fund your RAMM account. The minimum Investment balance is $100. The desired investment amount is transferred from your RAMM account to the Investment instantly.
3.5. The copying will start immediately after investing. The positions opened in the RAMM strategy at that moment will be copied to your Investment at the current market price.
3.6. The RAMM platform will automatically select the volume of copied positions, proportionally to the size of an investment. The minimum volume of a trade that can be copied to an Investment is 0.01 lot, which allows making very small investments.
3.7. Investor agrees to pay commission to the Trader (Trader’s fee), the amount is indicated in the description of the Strategy. The size of commission is defined by the Trader when the Strategy is created. There are two types of fees in RAMM: Turnover fee and a Performance fee.
3.8. The calculations of a Performance fee is based on the principle of high-water mark. The fee is paid only if the Investor’s profit constantly grows and exceeds the previous high-water mark. If a Trader allows loss in some trading interval, the Investor won’t pay the Performance fee until profits of the subsequent trading intervals exceed previous losses.
3.9. The Turnover fee may be set up by the trader and is measured in dollars per 1 000 000 USD of turnover. This type of commission is calculated and paid when a position is being opened or closed. For example, if a position of 0.5 lot USD/CHF is opened in the Investor’s account, and the strategy’s Turnover fee is 10 USD / mln., the Investor will pay 0.5 USD to the Trader. When this position is closed, the Investor will pay an additional 0.5 USD.
3.10. The Performance fee is calculated and paid automatically at the end of each trading period or when the Investment is closed.
4. Reporting period
4.1. The reporting trading period (i.e trading week) begins when the Investor joins the Strategy.
4.2. The reporting trading period end date is Friday.
4.3. The Trader’s fee specified in the Strategy description is calculated separately for each Investor and transferred to the Trader’s RAMM account automatically at the end of each week, on Saturday.
5.1. Trader can create an unlimited number of Strategies in the RAMM-service. For each strategy separate account is created in MetaTrader 5.
5.2. When creating a Strategy the Trader has to specify the following parameters:
The name of the strategy, which will be visible to other users in the list of the strategies and in the Rating;
Fee rate (performance and turnover fee). The turnover fee is optional and can be set by the Trader in addition to the performance fee. The fee rate settings are fixed once the strategy is created and cannot be changed later;
5.3. Trader can monitor Investments in his Strategy in the List of investments section in the RAMM platform.
6. Account funding
6.1. To deposit funds to the RAMM account a Client has to submit a deposit request in his Personal area.
6.2. Once the deposit request is processed, the corresponding amount is debited from the Client’s Wallet.
7. Funds withdrawal
7.1. To withdraw funds from the RAMM account a Client has to submit a withdrawal request in his Personal area.
7.2. Withdrawal of funds from the RAMM account is carried out to the Client’s Wallet by internal transfer, in the same currency.
7.3. Once the withdrawal request is executed, the Investment balance must be no less than the minimum required level (clause 3.4).
7.4. To withdraw all funds, the Client must first close all active Investments.
8. Trading operations
8.1. Trader performs trading operations in the Metatrader 5 platform. There can be several open positions for different financial instruments on one trading account. But the account can have only one open position per trading instrument at any given time. This accounting system is called the netting system. These trading operations, including the modification of orders, are copied to the Investor’s account. At the same time, the Investor can monitor all trading activity on his account in the corresponding section of the RAMM platform.
8.2. There can be several open positions for different financial instruments within one Strategy. In the RAMM platform positions are displayed in accordance with the netting system, which allows only one open position per trading instrument. When the market order is executed, its volume, depending on its direction, is added to or subtracted from the current open position for the instrument, and a record about this operation is added to the investment statement.
8.3. When performing trading operations, the Trader must be guided by the Regulations on trading operations depending on the type of his account. These regulations are available in the Client’s Personal area.
8.4. Trader’s Instructions result in creation, deletion, or modification of the Orders on Trader’s Investments and generation of signals, based on which the Orders in other Investments into the Strategy are created, deleted, or modified.
8.5. When a signal to open a position is received by the RAMM platform, the system calculates and places orders for each active Investment of this Strategy. The Investment volume is calculated by the RAMM service automatically based on the Investment profile settings according to clause 3.6.
8.6. The Investment may be closed by Stop Out. This is a forced closure of open positions without the consent and any prior notice to the Investor if the Investment’s Equity to margin ratio falls below the Stop Out level.
8.7. The Stop Out value for the Investment is set at 20%.
8.8. Investor can close positions in the Investment only in the process of its liquidation. When an Investment is being closed by the Investor, all its open positions are closed at the current market prices, while the positions on the remaining Investments in the strategy remain intact.
9. Funds settlement
9.1. At the end of each reporting trading period, the RAMM system calculates the drawdown for all Investments. The trader’s fee is also calculated and credited at the end of the reporting period.
9.2. Investment drawdown is calculated as follows:
9.2.1. When an Investment is created, it has a zero drawdown.
9.2.2. At the end of each trading week:
- If losses are registered at the end of the reporting period, the Investment drawdown increases by the loss amount.
- If the trading week was closed with net positive (profit):
- If the Investment had a zero drawdown at the beginning of a trading week, the drawdown remains changed.
- If there was a drawdown at the beginning of a trading week, and the profit received in the Investment is less than the drawdown, the Investment drawdown is decreased by the amount of profit.
- The drawdown of an Investment will be set equal to zero if its previous value was different from zero and the profit received is greater than or equal to this value.
9.3. Trader’s fee is calculated in accordance with clause 3.9.
9.4. If profit was received at the end of the trading week, the Strategy Fee (performance fee) is calculated:
9.4.1. If the Investment is in a drawdown at the end of the reporting trading period, the Strategy fee equals zero and commission isn’t credited to the Trader’s account.
9.4.2. If the Investment drawdown equals zero, the Strategy Fee equals to the Fee Rate multiplied by the difference between the Investments weekly profit and the Investment drawdown (if any) at the beginning of the reporting period.
9.5. In addition to the Performance fee, a Trader can set up the Turnover fee.
9.6. The Turnover fee is calculated and paid when a position is being opened or closed and is measured in dollars per 1 000 000 USD of turnover.
10. Responsibilities of the Investor and Trader
10.1. Investor and Trader guarantee that:
- the information and personal data they provided during registration as the Company Client, as well as during the execution of all documents related to these Regulations, are correct and accurate;
- they have read, understand and accept all adopted by the Company regulatory documents and their terms;
- they fully understand the consequences of their actions regarding the implementation of the provisions of these Regulations.
10.2. The Trader should monitor the volume of open positions in the Strategy and adjust them if necessary.
10.3. The Investor and the Trader are not entitled to transfer passwords from the trading platform and Personal account area to third parties and undertake to ensure their safety and security. All actions and activity carried out in relation to the execution of these Regulations and/or which involved using the login and password are considered executed by the holders of the said information. The Company shall not bear responsibility for unauthorized use of registration data by third parties.
10.4. Investor and Trader are not entitled to:
- assume any responsibility on behalf of the Company or place the Company under any obligations;
- use the Company’s brand name and/or trademark;
- publish or assist in any publications and announcements concerning the Company in mass media, publish or distribute any articles and letters related to the Company or assist in the writing of such articles and letters in any newspapers, magazines and other periodicals, Internet blogs and forums without the Company’s permission;
- make any guarantees, promises or announcements in relation to any payments on behalf of the Company or using the brand name and/or trademark of the Company;
- perform any other actions that may cause any damage to the Company or raise any lawsuits or claims against the Company from third parties;
- in the event that any claims/lawsuits are brought against the Company as a result of a violation of the terms and conditions of these Regulations by the Trader or Investor, the Trader or Investor undertakes to reimburse the Company for all the losses (expenses) incurred as a result of these violations.
11. Investment liquidation
11.1. Investor can close his Investment at any time. When an Investment is being closed, all its open positions are closed at the current market prices. The Trader’s fee is calculated and paid. After that, the money is transferred from the Investment to RAMM account.
11.2. If an Investor sends an instruction to close an investment which has open positions for currently non-tradable instruments (i.e. during the weekend), these positions will be closed once trading is resumed.
11.3. When the Investment reaches its Protection or Target level, trading is suspended. If it happens outside the trading hours of some instruments, then positions in these instruments will be closed at the market price when trading in these instruments is resumed.
11.4. A liquidated Investment cannot be restored, but an Investor can create a new Investment in the same Strategy.
12. Strategy liquidation
12.1. Trader can close the Strategy at any time. If a Strategy has open positions at the time of liquidation, all of them will be automatically closed at the current market prices.
12.2. When a Strategy is being closed, all its Investments are closed, the Trader’s fee is calculated and paid, and the funds from the Strategy are transferred to the RAMM account.
12.3. The liquidation process is irreversible: the Strategy cannot be restored once it’s closed.
12.4. The Company reserves the right to liquidate the Strategy in the following cases:
12.4.1. When fraudulent activity is suspected (with prior notification of the Trader by email),
12.4.2. Due to other reasons (at the Company’s sole discretion, without prior notice and disclosing the reason).
12.5. A strategy will be automatically archived if:
- no trading or non-trading operations have been performed in the account within 90 days,
- there are no open orders on the account.
12.6. If a Strategy is archived automatically, all Investments attached to this Strategy will be automatically closed. The remaining funds in the investments will be transferred back to the investors’ wallets.
13. Duration and Amendments
13.1. These Regulations come into force the moment they are accepted by the Client and shall be considered to be terminated upon termination of the Customer Agreement.
13.2. A Client acknowledges that the Company has the right to make amendments to the provisions of these Regulations at any time at its own discretion, having provided the Client with written notification about the changes at least 3 (three) calendar days in advance. Such amendments shall come into effect and are binding for the Client as of the date indicated in the notification.
13.3. One of the following means of electronic communication shall be deemed written notification: e-mail; notification in the Platform; announcements on the Company’s website.
14. Risk disclosure
14.1. The Company does not guarantee any earnings and profit. The success of a trading Strategy in the past does not guarantee the same success in the future.
14.2. The Company is not responsible for non-compliance with individual agreements and arrangements between the Investor and the Trader. Any promises regarding guaranteed rates of return and profit, as well as potential compensation payments, should be interpreted as intentionally misleading information.
14.3. Investor and Trader accept possible financial losses in the form of direct losses or lost profit caused by the following risks:
- Trader’s lack of skills and knowledge necessary for successful trading in the financial markets;
- loss of control over the Strategy by the Trader;
- involvement of third parties into accessing and managing the Strategy;
- misunderstanding or misrepresentation of these Regulations by the Investor or the Trader;
- delayed filing of a claim against the Company, concerning trading operations on the Client’s trading account;
- unforeseen delays in fund transfers between accounts or delays in the processing of deposit/withdrawal requests or requests to close an account or an Investment;
- liquidation of a Strategy;
- technical malfunction and their consequences;
14.4. The Company shall under no circumstances be liable for the cases associated with the above mentioned risks and their consequences.
15.1. All types of agreements between the Company and the Clients on the execution of the terms of these Regulations may be concluded through mail, email, fax or any other method of communication allowing to verify that the document originates from the Company or the Client.
15.2. In the event that one or more clauses of these Regulations become invalid, null and void by any reason, it shall not affect the validity of any other clause hereof.
15.3. In the absence of a clear and unambiguous interpretation of the term in the text of these Regulations, one should be guided by: first, the definition provided in the relevant Regulatory documents posted in the Personal area and on the Company’s website (except for the Customer Agreement), second, the definition provided in the Customer Agreement.
15.4. The Company under no circumstances shall be liable for any direct, indirect, incidental or consequential loss or damage, including the loss of business, profit or reputation. The Company is not responsible for delays and malfunctions of the Service or the means of communication used by the Client to work with the Service, as well as communications between the Company’s servers and RAMM services, regardless of their causes, including, without limitation, technical failures, errors in the operation of hardware or software, as well as due to actions of exchanges, governments or regulatory organizations, due to wars, terrorism or unintentional actions of the Company or RAMM service.
15.5. The Client agrees that the yield curve of a particular RAMM strategy may differ from the yield curve of a MetaTrader 5 trading account linked to this strategy. This is due to the fact that the yield curve in RAMM is built based on the signals copied to the reference account in the RAMM system.
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Kingstown, Saint Vincent and the Grenadines
Дата последней редакции 20/08/2020