Capital, Stewarded
Educational Resource

Understanding PAMM Infrastructure.

PAMM (Percentage Allocation Management Module) is the technical infrastructure that enables proportional capital allocation to a centrally managed trading model. This framework provides institutional-grade execution access while maintaining complete non-custodial account ownership.

Non-Custodial by Design Proportional Allocation Broker-Automated Settlement High-Water Mark Fees

What is PAMM?

PAMM infrastructure is a broker-level technology that connects multiple individual investor accounts to a single master trading account operated by a portfolio manager. Each participant owns their individual account and retains full legal ownership of their capital throughout the allocation period.

When the portfolio manager executes a trade on the master account, the broker automatically replicates that trade across all connected investor accounts in proportion to each account's allocated capital size. Performance, profits, losses, and fees are all distributed proportionally and calculated automatically by the broker's impartial system.

Key Principle: Proportional Allocation

If Investor A allocates $10,000 and Investor B allocates $100,000 to the same PAMM master account, and the master account achieves a 5% return, both investors receive exactly 5% growth on their respective capital. The percentage performance is identical regardless of capital size. The only variables affected by capital size are settlement frequency and performance fee percentage, not execution or return.

Why PAMM is Structurally Superior

Non-Custodial by Design

Capital never leaves the investor's own broker account. The portfolio manager holds execution authority only and cannot withdraw, transfer, or access capital beyond trade placement. This is enforced at the broker infrastructure level, not through contractual promise.

No Trade Copying Possible

PAMM architecture prevents signal leakage and unauthorized trade replication. Trades cannot be copied, mirrored, or redistributed outside the PAMM structure. This protects strategy integrity and ensures all participants receive identical proportional execution.

Broker-Calculated Settlement

Performance fees, profit distribution, and settlement calculations are handled entirely by the broker's impartial PAMM system. No manual reconciliation occurs. This eliminates calculation disputes and ensures transparent, automated fee application under High-Water Mark protection.

Complete Capital Control

Capital partners retain full deposit and withdrawal authority at all times. There are no lock-in periods, no withdrawal restrictions, and no penalties for capital removal. Deposits and withdrawals can be executed at any time through the broker's standard account management interface.

If a withdrawal occurs between regular settlement cycles, the broker's PAMM system automatically performs an Interim Settlement to reconcile accrued performance fees up to that moment. This ensures accurate fee calculation regardless of withdrawal timing. Capital liquidity is never compromised.

PAMM vs. Signal Copying

Signal copying and PAMM infrastructure are fundamentally different in structure, control, and investor protection.

Feature ✓  PAMM Infrastructure Signal Copying
Capital Custody Remains in investor’s own account Remains in investor’s own account
Execution Control Portfolio manager has direct execution authority Investor’s platform copies signals with latency
Trade Replication Structurally impossible (broker-enforced) Possible (signals can be redistributed)
Proportional Allocation Automatic and precise Manual lot sizing required
Fee Calculation Broker-automated, impartial Manual or third-party reconciliation
Slippage Risk Minimal (centralised execution) Higher (latency in signal transmission)

How V-OneFX Uses PAMM

V-OneFX operates Universal Allocation exclusively through PAMM infrastructure on regulated A-Book brokers. This ensures:

  • All capital partners receive identical proportional performance A 5% return on the master account means every participant, regardless of capital size, receives exactly 5% on their allocated capital.
  • Strategy integrity is protected PAMM architecture prevents unauthorized signal copying or trade redistribution, ensuring execution quality remains consistent.
  • Performance fees are transparently calculated The broker's PAMM system handles all fee calculations under High-Water Mark protection, with automated settlement according to the assigned tier.
  • Capital remains under client control Full withdrawal rights are retained by the capital partner at all times. V-OneFX holds trade execution authority only.

Operational Note: PAMM infrastructure is the only allocation method used by V-OneFX for Universal Allocation. Signal services, trade copying platforms, and master-slave account structures are not offered. This ensures every capital partner operates under the same proportional allocation logic with identical execution quality.

Capital Allocation

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V-OneFX Universal Allocation operates through PAMM infrastructure on regulated A-Book brokers. Capital remains in client-owned accounts throughout participation.

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