Example: Investors Peter and Jackson want to earn money from the trading world but they lack the knowledge to trade, however, they have the funds to invest. Then we have Mary, the Money Manager, who is an experienced trader and is comfortable with trading with the Investor's funds.
Mary sets a 10% performance fee in the offer. Peter invests $600 and Jackson invests $400, that means that Peter's share is 60% and Jackson's share is 40% respectively. The total amount of funds in the Fund is $1000.
Let's say that Mary makes a profit of $1000 while trading, the profit will be distributed accordingly by the PAMM system according to the Investor's share in the Fund, therefore, Peter will get 60% and Jackson will get 40%. If Mary loses money while trading, the same rule applies.
When charges are set within the offer, in this case 10% performance fee, the PAMM system will first deduct the charges from the Investors and then distributes the remaining funds according to the share of the Investors.