1. Non-Custodial Trading & LPOA Architecture
FX Fund Managers strictly operates on a 100% non-custodial framework. Capital deposited by clients remains entirely within the client’s individual, segregated account at a Tier-1 regulated brokerage under their own legal entity or name.
Trade authorization is granted exclusively via a Limited Power of Attorney (LPOA) agreement or MAM/PAMM manager binding. Under no circumstances does FX Fund Managers request, accept, or hold client funds directly, nor do we maintain any technical or legal mechanism to withdraw, transfer, or modify client account equity balances.
Zero Withdrawal Authority Guarantee
Your LPOA authorization strictly covers order placement (Buy, Sell, Close, Limit, Stop). Only you, as the primary account owner, maintain withdrawal and deposit privileges with your broker.
2. Quantitative Risk Control & Hard-Stop Policy
Risk management is the foundational pillar of our quantitative algorithm execution engine. Every managed account is bound to automated risk limits designed to curtail severe market drawdowns.
- Hard Daily Stop-Loss (-5.00%): An automated circuit-breaker actively monitors open floating drawdown. If total equity drawdown approaches -5.00% within a 24-hour trading cycle, all active positions are liquidated immediately and automated trading is halted for the remainder of the session.
- Per-Trade Risk Caps: Individual position risk is limited to a maximum of 0.5% – 1.0% of portfolio equity, ensuring position sizing remains balanced regardless of market volatility.
- No Martingale or Unhedged Grid Execution: We strictly prohibit dangerous trading models such as martingale lot doubling, unmanaged grid stacking, or holding trades without defined stop-loss limits.
Macroeconomic Event Circuit Breakers
During extreme black-swan news releases (e.g. central bank rate surprises, geopolitical shocks), algorithmic trading algorithms may temporarily pause execution to avoid severe spread widening and slippage.
3. High-Water Mark 80/20 Performance Fee Policy
Our management remuneration is strictly incentive-aligned with client success under the industry-standard High-Water Mark (HWM) principle.
Clients retain 80% of net profits generated. FX Fund Managers receives a 20% performance fee, which is billed or deducted strictly when the account equity reaches a new historical peak (High-Water Mark).
- Zero Management Fees: We do not charge upfront setup fees, monthly maintenance fees, or fixed asset management fees.
- Drawdown Protection: If an account suffers a net decline in equity, zero performance fee is earned or charged until the previous High-Water Mark peak is fully recovered.
- Settlement Cycles: Performance fee calculations are audited on a monthly calendar basis via automated broker MAM/PAMM billing protocols.
4. Institutional ECN/STP Order Execution Policy
All trade signals generated by our quantitative trading strategies are executed directly into interbank liquidity pools via Straight-Through Processing (STP) and Electronic Communication Network (ECN) routing.
FX Fund Managers operates with zero markups, zero spread padding, and zero B-Book counterparty exposure. We prioritize institutional execution speed (< 2ms fill latency), minimal slippage, and tight interbank spreads.
5. Client Eligibility & AML/KYC Compliance
Our non-custodial forex fund management services are available strictly to eligible individual investors, family offices, and corporate accounts who fulfill the following criteria:
- Broker KYC Approval: The client must successfully complete identity verification (Know Your Customer) and Anti-Money Laundering (AML) checks with an approved Tier-1 regulated broker.
- Minimum Capital Requirement: Accounts must meet our minimum recommended portfolio threshold of $10,000 USD to ensure optimal position sizing and algorithm execution.
- Jurisdictional Compliance: Applicants must reside in jurisdictions where non-custodial LPOA forex trading is legally permitted.
6. Policy Updates & Governance
FX Fund Managers reserves the right to review and update these operational policies periodically to maintain alignment with evolving international regulatory frameworks, risk models, and quantitative technology enhancements.
