Allocation Methods for PAMM
How the pooled model reallocates positions on deposits and withdrawals.
Clients & admins
PAMM pools investor capital into a single master account, so positions must be reallocated as money enters and leaves the pool. Two methods control what happens on deposits and withdrawals.
| Behavior | Reallocation on deposit & withdrawal | No action on deposit / autocorrection on withdrawal |
|---|---|---|
| On deposit | All open positions are reallocated in proportion to equity | No reallocation |
| On withdrawal | All open positions are reallocated in proportion to equity | Positions are autocorrected (partially closed) proportionally |
| Keeps investor shares aligned | Yes | No — performance can diverge between investors |
| Leverage consistency | Maintained across the pool | Master leverage rises versus investors |
| Recommended | Yes — the safe default | Only with careful management of the trade-offs |
Where it is set
The reallocation method is chosen in the PAMM master account settings. Read the two pages below for full worked examples.
In this section
Reallocation on deposit and withdrawal
Positions are rebalanced across investors in proportion to equity on every deposit and withdrawal — a full worked example.
Clients & adminsNo action on deposit and autocorrection on withdrawal
Deposits trigger no rebalancing; withdrawals autocorrect positions proportionally — with trade-offs to manage.
Clients & admins
