In a PAMM account, profits are shared between the Master and the Investors based on the amount of capital each investor has contributed. This profit-sharing is also referred to as the performance fee. The performance fee is calculated at the end of each calendar month, and the distribution of profits and fees is tabulated during the first week of the following month.
Investors will receive their share of the profits (or bear the losses) based on their proportion of the total capital in the PAMM account. The Master earns a performance fee from the profits generated by their trades, and this fee is deducted from the total profits before distribution.