Reserve Account

For example the total fund = $ 100,000, the contribution of the investor = $ 5000, the Reserve Account = $ 40,000. Obtain the contribution investor is 5 000 $ 100 000 $ * 100% = 5% of the total fund. Hence the investor is entitled to receive 5% * 40 = 000 $ 2000 $ from the reserve fund. If the date of withdrawal the investor has a balance on your account equal to $ 4,000 (ie drawdown account is 1 000 $), then the investor from the reserve account is paid this amount outstanding $ 1,000, and if at the time of withdrawal the investor has a balance equal to $ 2,500 from a reserve account shall be paid all of $ 2,000, the investor has the right get. A reserve account does not mean that investors are 100% breaking even, or 100% safety deposit. This is just an insurance reserve funds, which guarantees the full or partial repayment of drawdown account investor. 3.

Another version of the insurance financial risk of the investor. When part of the financial risk takes on directly the trader, which will make transactions on the account of the investor. For example a trader who will be to manage investor's funds, making its own account a fee, which determines the amount of trust the trader capital. If a trader makes a losing trade, he loses it is his fee, and the investor does not bear financial losses. For example, the base yield trader makes more than 100% per annum, an average of 150-200%.