Before -> After?
We're pivoting our business model to grow investor capital and the profitable provider pool
DT
Darwinex Team

The Changes

From
1st June 2020,
there will be a NEW Darwin for each OLD Darwin, because we’re pivoting our investor model to a NEW
@Target Risk
, aka Value at Risk Benchmark
@Brokerage
Commission schedule
Asset Management Fee schedule: including
@Performance/Success Fee
and
@Management Fee
Parameter
In the past
Change
Going Forward
Comments
1
Target Risk
Max. 10% Value at Risk
Goes down by 35%
Max. 6.5% Value at Risk
Applies to “new” DARWINs & investors - we encourage existing investors in
old
DARWINs to switch to
new
DARWINs and use portfolio leverage to scale up to “old” risk/return level.
2
Brokerage
25$ per million $
60% lower commissions
10$ per million $
The reduction is across both “new” and “old” risk DARWINs. We’ll stop paying diversification rebates.
3
Performance/Success Fee
20% quarterly success fee High Water-Mark
No change in profit percentage But: NEW Darwins pay 60% less brokerage → more performance!
20% quarterly success fee High Water-Mark
Performance and therefore
@Performance/Success Fee
s heavily depend on i)
@Brokerage
charges and ii) strategy rotation

New DARWIN generates substantially more investor:
Profit and
Choice of profitable investable strategies
4
Management Fee
No management fee
Introducing a management fee
1.2% per annum on 6.5% VaR 1.85% per annum on 10% VaR
Inactive DARWINs accrue no management fees.
5
Providers overall
"Paid” success fee to Darwinex, via investor
@Brokerage
paid to Darwinex broker
Darwinex waives investor brokerage revenues
Provider performance feeds 1:1 to investor profits without brokerage friction → more provider success fees → makes possible to share success fees 75% provider 25% Darwinex
Darwinex is waiving revenue to facilitate professional investor AuM acquisition going forward
6
Investors overall
Darwinex indirectly volume incentivised and not directly incentivised for investor AuM or performance
Darwinex will charge a management fee and a share in success fee paid
Darwinex directly incentivised for investor retention and performance
84% of investors would have done better under the new than under the old model - and 84% underestimates the impact of better provider choices and less stop losses.
No results from filter
6
Count

What should I do now?

Strictly speaking,
Providers
have
nothing
to
do
other than trade well. We take care of the rest.
Investors have
nothing
to
do
, but should note that
They’re welcome to keep
old
DARWINs, and will benefit from EVERY improvement going forward, BUT
Old DARWINs can be sold, but no longer be
bought
.

Having said that, please keep reading, there’s plenty more detail!

Questions / Feedback?

Please let us know what we must explain better and we’ll do our best on the dedicated
or at the
.

Making the most of this document

Hyperlinks

It includes lots of hyperlinks like →
. Clicking them take you to the
section 😀.
Simply Click “back” on your browser if you do by accident.

Structure & contents

Includes:
explaining why we decided to re-quote past performance
across the overall provider and investor base
and
to understand the specific impact on DARWINs
which we’ll update regularly to cover your questions as posted
thread
explaining why we decided to lower DARWIN target risk
provides a straight answer on what’s a DARWIN without references to the past




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