Between SCAP Broker LTD, the Account Manager, and the End Investor.
The present agreement is entered into, on one part, by:
SCAP Broker LTD, a company legally constituted and authorized to provide brokerage and financial intermediation services, hereinafter “The Broker” or “The Company”;
and on the other part:
[Full Name of the Manager], of legal age, identified with [tipo y número de documento], with domicile in [país o ciudad], hereinafter referred to as “The Manager”;
Both parties, hereinafter jointly referred to as “The Parties”, agree to subscribe to the present PAMM Account Management Agreement in the terms and conditions set forth below.
Clarifying note: Client Investors who allocate funds to the PAMM account will do so by separate acceptance of the PAMM Investor Participation Agreement, without this contract generating a direct, fiduciary, or contractual relationship between The Manager and said Investors.
1. Purpose of the Agreement
The purpose of this agreement is to regulate the terms, conditions, and responsibilities under which The Manager will operate a PAMM (Percentage Allocation Management Module) Account provided by SCAP Broker LTD, in order to execute trading strategies on its own capital and on the funds allocated by third parties (Client Investors) who voluntarily participate in said account.
The PAMM system is an automated technological module that allows The Manager to perform operations on a main account, while the results (gains or losses) are distributed proportionally among the Investors, according to their individual participation.
The Manager will act autonomously in making operational decisions, without prior intervention from The Broker or the Investors, and under its own management methodology. SCAP Broker LTD is limited to providing the technological infrastructure, the execution environment (MT5 platform), and the automatic calculation, allocation, and distribution mechanisms.
2. Nature of the Relationship
This agreement does not constitute an employment, corporate, fiduciary, or financial advisory relationship between SCAP Broker LTD (“The Broker”) and The Manager.
The Manager acts autonomously, at its own risk, as an independent third party, being exclusively responsible for its operational decisions and the impact these have on the funds managed within the PAMM account.
Likewise, no provision of this agreement shall be interpreted as a delegation of authority or commercial representation of The Broker, nor as the existence of a mandate, agency, joint venture, or subordination of any kind.
3. Operation of the PAMM Account
3.1. The Manager will execute financial operations exclusively through the PAMM account assigned by SCAP Broker LTD, which integrates The Manager’s own capital and funds voluntarily allocated by Client Investors.
3.2. Each Investor retains individual legal ownership of the funds contributed, but grants The Manager, by express acceptance of their own agreement, the power of management and operational execution over the aggregated total of the PAMM account.
3.3. Gains or losses derived from operations carried out by The Manager will be calculated and distributed automatically by the PAMM system in proportion to the capital invested by each Investor, in accordance with the technological module developed and implemented by SCAP Broker LTD.
3.4. The Broker does not intervene in The Manager’s operational strategy or decisions, and its role is exclusively limited to providing the technological infrastructure, the MetaTrader 5 (MT5) execution platform, and the automatic calculation, distribution, and technical supervision mechanisms.
3.5. The Manager acknowledges that there is no direct contractual or fiduciary relationship with the Investors, and that any allocation or withdrawal of capital by them is carried out through the channels established by The Broker, without requiring its approval.
4. Responsibilities of The Manager
4.1. The Manager undertakes to execute financial operations with professionalism, diligence, and technical responsibility, in accordance with the risk profile declared to SCAP Broker LTD and the standards of prudent and transparent management.
4.2. The Manager shall refrain from carrying out operations or implementing trading systems that may be considered abusive, manipulative, or technically unfair, such as, but not limited to:
Arbitrage technical or of latency.
Unauthorized high-frequency trading (HFT).
Use of algorithms designed to alter execution or congest the system.
Exploitation of pricing errors, spreads, or technical disconnections.
Access, use, or disclosure of privileged or non-public information.
4.3. High-risk practices allowed under the full responsibility of The Manager:
The following strategies may be used, always with the full knowledge of The Manager and with acceptance of the associated risks, which could lead to extreme drawdowns or total loss of capital:
Martingale systems, uncontrolled grid trading, or aggressive recovery techniques.
Scalping during high-impact economic news, without coordination with the server or prior technical authorization.
High-frequency strategies or those with intensive use of automation, which generate significant load on the technological environment.
Warning: SCAP Broker LTD does not assume responsibility for the consequences derived from such practices if they are executed within the operational limits of the system.
4.4. The Manager must keep its verification profile current and updated, including identity documents, certifications, contact details, and any technical information required by SCAP Broker LTD.
4.5. Sub-delegation, assignment, sublicensing, or subcontracting of management to third parties is prohibited, unless prior written authorization from The Company is obtained.
4.6. The Manager expressly declares that it does not guarantee future returns, does not induce investments through false or exaggerated statements, and will not represent SCAP Broker to the Investors.
4.7. Non-compliance with any of these responsibilities may lead to the immediate suspension of the PAMM account, retention of commissions, cancellation of the agreement, and —in serious cases— reporting to competent authorities and demanding compensation for damages.
5. Responsibilities of SCAP Broker
5.1. SCAP Broker LTD undertakes to provide the necessary technological infrastructure for the operation of PAMM accounts, including:
Management and monitoring platform (MT5 and associated panels);
Automatic calculation of participations, profits, losses, and commissions;
Permanent access to operation history, distribution, and activity.
5.2. The Broker will automatically apply the agreed commissions, penalties for non-compliance, and proportional distribution of returns, as established in the initial configuration of the PAMM account and the public terms accepted by each Investor.
5.3. SCAP Broker will not intervene in The Manager’s operational decisions, nor will it assume responsibility for the profitability or results of its strategy. Its role is strictly technical and administrative.
5.4. The Company reserves the right to temporarily or permanently block The Manager, restrict operations, or close a PAMM account when it detects:
Indications of fraud, system abuse, or manipulation of the technological environment;
Serious breach of the terms of this agreement;
Express requirement from regulatory authorities or regulatory compliance.
6. Manager’s Remuneration Plan
6.1. The Manager will be entitled to receive a success fee (profit share) on the net profits generated in the PAMM account, according to the percentage previously defined in its manager profile and expressly accepted by each Investor at the time of allocating their funds.
6.2. Additionally, The Manager may establish other forms of remuneration, such as:
Fixed periodic commissions, for active management.
Commissions per volume traded (lotage).
Penalties for early withdrawal of capital, if authorized by the system and published in advance.
6.3. All applicable economic conditions must be duly declared in The Manager’s public profile within the PAMM system, and cannot be modified retroactively for Investors already linked.
6.4. SCAP Broker LTD will be solely responsible for the automatic calculation, retention, and distribution of corresponding commissions, in accordance with the algorithms integrated into the PAMM infrastructure and the active configuration in each account.
6.5. The Manager recognizes that the perception of its commissions is conditioned on the full compliance with this agreement, and that SCAP Broker may totally or partially suspend its payment in case of:
Contractual breaches;
Unauthorized activities;
Fraud, manipulation, or negative regulatory report.
7. Limitation of Liability
7.1. SCAP Broker LTD acts exclusively as a provider of technological infrastructure, and assumes no responsibility for The Manager’s operational decisions, nor for the economic results of operations carried out in the PAMM account.
7.2. The Broker will not be responsible for patrimonial losses, indirect damages, loss of opportunities, or profitability expectations generated by The Manager’s management, nor for the voluntary investment decisions adopted by the Investors.
7.3. The Manager, for its part, will not be responsible for losses attributable to force majeure events, extraordinary market conditions, technical failures beyond its reasonable control, or temporary interruptions in the platform provided by SCAP Broker LTD or third-party technology providers.
7.4. The Investor expressly acknowledges and accepts that any allocation of capital in a PAMM account implies a financial risk, which may result in partial or total loss of the invested capital, without generating a right to compensation or automatic claim against The Broker or The Manager.
8. Limited Power of Attorney (LPOA)
8.1. The Investor voluntarily, expressly, and limitedly grants The Manager a Limited Power of Attorney (LPOA) so that The Manager, exclusively within the environment of the PAMM account enabled by SCAP Broker LTD, can:
Execute buy and sell orders for financial instruments.
Open, modify, and close operations in the enabled markets.
Apply risk management techniques within the parameters accepted by the PAMM program.
8.2. Limitations of the power
This power does not authorize The Manager to:
Make withdrawals, transfers, or directly dispose of the Investor’s funds.
Modify credentials, personal data, or private Investor settings.
Transfer the power to third parties, unless prior written authorization from the Investor and approval from SCAP Broker LTD.
Legally represent the Investor before authorities, providers, or third parties.
8.3. Technological and operational scope
The LPOA is executed through the PAMM module technology, which implies that:
The Manager does not have direct access to the Investor’s capital, but only to the proportional allocation of operations through the platform.
Gains or losses are automatically distributed according to the registered participation.
Any order placed by The Manager within the PAMM account will be considered validly authorized by the Investor under this power.
8.4. Duration and revocation of power
This power:
Will be effective from the moment the Investor allocates funds to the PAMM account.
Will remain in force as long as the funds remain allocated.
May be revoked by the Investor at any time, by partial or total withdrawal of their capital from the user panel.
Will automatically become ineffective in case of PAMM account closure, Manager disassociation, contractual breach, or by order of SCAP Broker LTD.
8.5. Exclusion of Broker’s responsibility
SCAP Broker LTD acts solely as a technological facilitator of the PAMM system, implementing the rules previously accepted by both parties, without intervening in The Manager’s operational decisions, guaranteeing results, or assuming responsibility for the use of this power.
9. Confidentiality and Data Protection
9.1. All parties involved in this contract undertake to maintain absolute confidentiality regarding the information they access, including, but not limited to: personal data, trading strategies, managed volumes, operational results, account configuration, and any other sensitive or non-public information.
9.2. SCAP Broker LTD guarantees the processing of personal data in accordance with its Privacy Policy, which is publicly available on its website, and complies with the principles established in applicable international legislation, including the General Data Protection Regulation (GDPR), PIPEDA, and other data protection regulations according to the corresponding jurisdiction.
9.3. The Manager may not establish direct contact, by any means, with Investors linked to its PAMM account, except through internal channels, messages, or formal tools provided by The Broker, and only when such communication is enabled within the regulated environment.
9.4. Non-compliance with this clause may lead to the immediate suspension of The Manager, the cancellation of its PAMM account, and the referral of the case to competent authorities if an infringement of data protection regulations or improper use of confidential information is configured.
10. Termination of the Agreement
9.1. The Manager may request the voluntary termination of its participation in the PAMM program by written notice at least fifteen (15) business days in advance, through The Broker’s formal channels. During this period, all open operations must be closed and the distribution of profits finalized according to existing balances.
9.2. SCAP Broker LTD may terminate this contract at any time, unilaterally and without prior notice, in the following cases:
a) Serious or repeated breach of the technical, ethical, or contractual rules of the PAMM program.
b) Verification of repeated losses attributable to negligence, inexperience, or irresponsible management.
c) Execution of prohibited practices, system abuse, use of unauthorized methods, or indications of fraud, manipulation, or collusion.
d) By requirement of regulatory, judicial, or compliance authorities.
e) Any other cause that, in The Broker’s judgment, compromises the stability, legality, or reputation of the PAMM program.
9.3. The termination of this agreement does not exempt The Manager from fulfilling its pending obligations, including the final distribution of results, the payment of penalties, and compliance with confidentiality or intellectual property clauses.
9.4. Investors linked to the PAMM account may withdraw their capital totally or partially at any time, according to the terms, penalties, or conditions previously defined and accepted in The Manager’s profile, without requiring its authorization.
11. Jurisdiction and Conflict Resolution
10.1. This contract will be governed and interpreted in accordance with the laws of Saint Lucia, the legal seat of SCAP Broker LTD, unless the parties expressly agree otherwise in writing for particular cases.
10.2. Any controversy, claim, or difference arising between The Manager and SCAP Broker LTD related to this contract, its execution, interpretation, or termination, will be resolved in the first instance through internal conciliation mechanisms and institutional arbitration, in accordance with the regulations of the arbitration center designated by SCAP Broker.
10.3. In the event that arbitration is not possible or effective, the parties agree to submit to the exclusive jurisdiction of the competent courts of Saint Lucia, waiving any other jurisdiction that might correspond to them by reason of their present or future domicile.
10.4. The Manager acknowledges that it may not initiate collective legal actions or claims outside the foreseen contractual framework, and that any attempt at defamation, media exposure, manipulation on social networks, or unauthorized disclosure of disputes will be considered a serious violation of the confidentiality, reputation, and integrity clauses of the system.
12. Annexes
Annexes to the PAMM Manager Agreement
SCAP Broker LTD
Annex I – Technical Operating Terms of the PAMM Account
SCAP Broker LTD
This annex details the technical parameters, limitations, and mandatory operational rules for all Managers linked to the SCAP Broker LTD PAMM system.
1. Enabled Instruments
Only instruments authorized by SCAP Broker on the MetaTrader 5 (MT5) platform under the PAMM account profile are allowed to be traded, which may include: currency pairs (Forex), stock indices, commodities, metals, and CFDs, depending on updated availability. Any attempt to trade unauthorized instruments will be considered a violation.
2. Maximum Allowed Leverage
The authorized leverage may be:
Standard: 1:100
Or variable, depending on the total capital managed, risk conditions, and Manager profile.
SCAP Broker reserves the right to adjust leverage without prior notice in volatile conditions or regulatory risks.
3. Drawdown Limits (Technical Recommendation)
With the aim of promoting prudent capital management and protecting Investors, SCAP Broker LTD recommends all PAMM Managers to observe the following operational risk limits:
Suggested absolute drawdown: maximum of 30% on the initial accumulated capital in the account.
Suggested daily drawdown: maximum of 10% on the balance at the beginning of each calendar day.
These values are not mandatory nor do they constitute binding operational rules, given that SCAP Broker LTD recognizes The Manager’s autonomy over its trading strategy. However:
The use of techniques that exceed these parameters is considered high risk and must be communicated to Investors in The Manager’s profile.
SCAP Broker LTD will not be responsible for economic losses derived from drawdowns exceeding these recommended margins.
The Manager assumes full responsibility towards Investors for the decisions made and their consequences, including the partial or total loss of allocated capital.
4. Minimum Operation Duration
Every operation must remain open for a minimum of three (3) seconds to avoid abusive or artificial execution strategies.
5. Specific Prohibitions
The Manager expressly undertakes not to execute the following practices, under penalty of immediate cancellation of the PAMM account:
a) Abusive scalping, understood as executions shorter than two (2) seconds without strategic justification.
b) Systematic exploitation of requotes, latency failures, or technological discrepancies.
c) Mirror operations between multiple PAMM accounts or personal accounts in order to artificially replicate results.
d) Shared access to the PAMM account with third parties, whether traders, advisors, or unregistered managers.
e) Any other action that, in SCAP Broker’s judgment, constitutes an unfair practice, system abuse, or violation of the program’s operational framework.
Annex II – Commission and Penalty Structure
Type of commission
Detail
Success fee (Profit Share)
[% defined in The Manager’s profile]
Fixed commission
[Monthly/bi-weekly/annually if applicable]
Commission per volume traded
[E.g., $ per standard lot if enabled]
Penalty for early withdrawal
[% or fixed amount if applicable, according to profile]
Observations: Commissions and penalties must be configured in the system and expressly accepted by the Investor. SCAP is not responsible for informal external agreements.
Annex III – Verification and Compliance Declaration (KYC / KYB)
SCAP Broker LTD
This annex forms an integral part of the PAMM Account Management Agreement, and its compliance is an indispensable condition for the activation and active permanence of The Manager within the SCAP PAMM™ program.
1. Manager’s Declaration
The Manager declares under oath to have truthfully and updatedly provided SCAP Broker LTD with the necessary documentation for its verification and approval in accordance with KYC (Know Your Customer) policies and, where applicable, KYB (Know Your Business), including:
Valid official identity document (passport or ID card with photo).
Proof of residence not older than 3 months.
Bank reference or statement with traceability of the origin of funds.
Sworn statement signed declaring not to be included in international sanctions lists (OFAC, EU, UN, etc.).
In case of acting as a legal entity:
Certificate of legal incorporation.
Document proving legal representation and current powers.
Register of ultimate beneficial owners (UBO), if applicable.
2. Commitment to Update
The Manager undertakes to keep the documentation updated at all times, and to notify SCAP Broker of any change in its personal, legal, or tax situation that may affect its eligibility status within the program.
3. Validation and Reservation
SCAP Broker LTD reserves the right to:
Verify the authenticity of the documents submitted through authorized third parties.
Reject or cancel The Manager’s access to the PAMM system in case of detection of falsehood, manipulation, expired, or unverifiable documents.
Report The Manager to competent authorities if there is evidence of fraud, impersonation, money laundering, or international sanctions.
4. Final Declaration
By digitally accepting this Annex, The Manager declares:
That the information supplied is complete, truthful, and verifiable.
That it has read and understood the legal implications of its non-compliance.
That it submits to the compliance and audit policies established by SCAP Broker LTD, without reservations.
Annex IV – Intellectual Property Clause and Restriction on Use of Strategies
SCAP Broker LTD
This annex regulates the treatment, use, and protection of operational strategies developed by Managers in the SCAP Broker LTD PAMM environment.
1. Exclusive Use in SCAP Broker
1.1. Any operational strategy, technical configuration, methodology, or trading system registered by The Manager in a PAMM account will be considered for exclusive use within the technological ecosystem of SCAP Broker LTD.
1.2. The Manager accepts that said strategy can only be executed through the platforms, tools, and conditions offered by SCAP, unless an express written agreement allows otherwise.
2. Confidentiality and Strategy Protection
2.1. SCAP Broker LTD undertakes not to disclose, sell, transfer, or replicate the strategy registered by The Manager, neither partially nor totally, without prior, express, and written consent from its owner.
2.2. The metrics, statistics, and returns generated by the PAMM account may be used for statistical or institutional marketing purposes, but without revealing the internal logic, detailed configuration, or proprietary technical parameters of the strategy.
3. Prohibition of Plagiarism or Misuse
3.1. The Manager declares that the implemented strategies are its own authorship, or well that it has authorization or valid license for their use, assuming total legal responsibility for their legitimacy.
3.2. The use of strategies belonging to third parties without authorization, or the copying of systems protected by copyright, trade secrets, or trademarks, will constitute causal of immediate cancellation of the PAMM account.
4. Procedures in case of infringement
4.1. In case of reasonable suspicion of plagiarism, misuse, or infringement of intellectual property rights, SCAP Broker LTD may:
Preventively suspend the PAMM account.
Require documentation or proofs to The Manager about the authorship or the license of the system used.
Notify the original owner or the corresponding authorities if the infringement is checked.
Initiate legal, contractual, or regulatory actions according to law.
5. International Scope
This clause applies without distinction of the country of residence of The Manager or the original owner of the strategy, and adheres to the international intellectual property protection norms, including multilateral treaties in force in the jurisdictions where SCAP Broker operates.
Annex V – Digital Acceptance Declaration
SCAP Broker LTD
This annex constitutes express manifestation of will by The Manager linked to the SCAP PAMM system, recognizing the legal validity of its digital acceptance.
1. Declaration of Conformity
The Manager declares under oath that:
It has read, understood, and accepted in its entirety the content of the PAMM Account Management Agreement, its clauses, conditions, and obligations.
It has reviewed and consents the Personal Data Protection and Confidentiality Policy established by SCAP Broker LTD.
It knows and abides by the Technical Operating Rules of the PAMM program contained in the corresponding annexes.
It understands and accepts the sanctions foreseen in case of non-compliance, fraud, misuse of the platform, or regulatory infringement.
It expressly accepts the legal validity of Annexes I to VI as integral part of the contract.
2. Digital Acceptance and Legal Equivalence
The validation by electronic means, included:
Digital signature in the SCAP Broker portal
Click in acceptance checkbox (“checkbox”)
Confirmation from registered and verified account
will be equivalent to full handwritten signature, according to the legislation on electronic commerce, digital contracts and data protection applicable in the jurisdictions where SCAP Broker LTD operates.
3. Contractual Integration
This Annex forms inseparable part of the main PAMM Management contract and its acceptance is indispensable requirement for its entry into force and operational continuity of The Manager.
Annex IV – Risk Disclosure for Investors
SCAP Broker LTD
The Investor declares to have read, understood, and accepted the risks associated with the participation in PAMM accounts managed through SCAP Broker LTD. In particular, it recognizes and accepts the following:
1. Nature of the PAMM Model
1.1. The PAMM accounts allow the allocation of capital to a designated Manager, who executes operations in the financial markets in name of multiple Investors.
1.2. The Investor conserves the legal property of its funds, but cedes temporarily the operational control to The Manager, within the technical and regulated environment of SCAP Broker.
2. Financial Risk
2.1. All investment in financial markets entails the possibility of partial or total loss of the invested capital.
2.2. The past performance of a Manager does not guarantee future results.
2.3. The Investor assumes that the decisions of The Manager, even if diligent, can result in losses by adverse market conditions.
3. Management Risk
3.1. The Investor accepts that the management will be realized according to the criterion, strategy and risk profile of the selected Manager, according to the information published in its profile.
3.2. SCAP Broker does not intervene nor endorses the operational decisions of The Manager, limiting itself to offer the technological infrastructure and the calculation of participations.
4. Technological and Operational Risks
4.1. Can produce technical failures in the trading platform (MT5), interruptions of the service, latency, slippage or errors in the execution of orders.
4.2. SCAP Broker will not be responsible for losses derived from events of force majeure, cyberattacks or external errors outside of its control.
5. Liquidity and Availability Risk
5.1. Although the Investor can request the withdrawal of its funds at any moment, this can be subject to:
Open operations not closed.
Penalties for early withdrawal according to what is declared by The Manager.
Internal processing times and identity validation (KYC/AML).
6. Acceptance and Exoneration of Responsibility
6.1. When allocating funds to a PAMM account, the Investor:
Declares to have knowledge about the inherent risks.
Assumes the total responsibility about its investment decision.
Exonerates SCAP Broker LTD of any future claim related to financial losses derived from the management.
7. Digital Consent
By electronic acceptance of this document, the Investor declares to have understood each of the previous points and manifests its informed consent to participate in the SCAP Broker LTD PAMM system.
This document is the property of SCAP Broker LTD. Its reproduction, modification, or distribution without express authorization will be prosecuted in accordance with international laws for the protection of contractual and reputational property.