Investor's Agreement
This revenue-Sharing Agreement is between DTM Algo Fintech Solutions Pvt. Ltd., and Investor, (hereinafter referred to as “Party B”) .
The Parties hereby agree to the following terms and conditions that shall define and govern the relevant aspects of this Profit Sharing Agreement.
Terms & Conditions
1. Purpose
The prime purpose of this Agreement is to set the guidelines and describe a method to share the Business revenues among the Parties, that are fair, workable, and acceptable to both the Parties.
2. Duties
Party A that is, DTMAlgo shall be responsible to run their computer-based software called Algorithmic Strategies on Investment made by Party B.
Party B shall be responsible to maintain required fund in their account to ensure Trading bots can run uninterrupted as per the design and demonstration given by Party A.
3. Revenue-Sharing
Profits earned from the Investment made by the investor that is Party B shall be shared with Party A in consideration of the following.
- “Profits” shall be deemed to be calculated by the additional income generated from investment made by Party B after deducting all expenses, which excludes brokerage, STT and GST as applicable.
- “Loss” shall be deemed to be calculated by the loss of fund from investment made by Party B including all expenses made that is brokerage, STT and GST as applicable.
- In case of “Loss”, that lost amount shall be adjusted with the “Profit” earned in successive month to calculate the net “Profit”.
- Payout to Party A shall be on the “Profit” earned from the investment only. In case of “Loss” there is no payout to Party A.
In consideration of the duties performed by Party A and Party B, party B shall be liable to pay Party A, a minimum consideration of 10% of the “Profit” earned.
The profit share shall increase of Party A can generate profit more than 5% calculated on monthly basis on the invested amount by Party B based on the below considerations.
- If profit is less then 5% then 15% of the total profit earned
- If profit is more than 5% then based on the calculation mentioned below.
If the Investment is Rs. 1,00,00,000 and profit generated is 9% = (5%+4%), then the profit share calculation shall be:
Total Profit: = 1,00,00,000*(5%+4%) = 9,00,000
5% profit is = P5 = 1,00,00,000*5% = 5,00,000
Delta Profit = Pd = 1,00,00,000*4% = 4,00,000
Profit share Part 1: P5*15% = 5,00,000*15% = 1,35,000
Profit share Part 2: Pd *20% = 4,00,000*20 = 80,000
Total Profit Share = Part 1 + Part 2 = 1,35,000 + 80,000 = 2,15,000
4. Payouts
Given below shall be the standard responsibilities of the Parties in terms of Payouts and Profit-Sharing in order of financial distribution, based on every project or job.
- Payout shall be given within 7 working days after the invoice got generated.
- No payout shall be give in case of “Loss”.
