How we operate
Algonet is a curated service, not a retail platform. The book is institutional allocators, family offices, and a small number of individually-approved mandates introduced by referral. Every engagement starts the same way. A mandate review. Scope, risk posture, custody, reporting cadence. Once that is settled, the sections below describe how operations run.
I — Access
01
Who the service is built for
Institutional allocators, family offices, and a small book of mandates that came in through referral. The model works best with counterparties who already know their risk mandate and their reporting needs.
02
Where we fit best
Allocators who want structure over narrative. Who want visibility into what's happening in execution without running the stack themselves. Who look at return and risk as one number, not two.
03
How the review runs
Introduction, discovery call, mandate scoping, counter-signed engagement. Typical cycle is ten business days. First-time institutional mandates open with a six-month evaluation tranche of $250k to $1M, with weekly reporting, before any scaling discussion. The structure protects both sides during the initial track of executed-versus-modeled performance under the allocator's specific risk parameters. The review is there to confirm alignment, not to filter.
II
Trade-only API key. Withdrawal permission stays off.
Mandates execute through an API key the client provisions on their own exchange account. Permission is TRADE only. Withdrawal must be disabled when the key is issued. A key with withdrawal scope will be declined and sent back to be re-issued.
Funds stay at the client's exchange, in the client's name, in every period. The client can kill the API key unilaterally in under a minute, with no involvement from us. If Algonet stops trading for any reason, none of that affects client capital.
This is not a feature. It is the first decision the firm was built around.
III
A monthly drawdown limit. Breach it, trading stops.
The collar is a monthly drawdown limit, set per mandate and written into the engagement agreement. If the limit is hit, a kill-switch in code stops execution. No human sits in the middle deciding.
It is a risk envelope, not a guarantee. Fills can slip during extreme volatility, exchange outages, or thin liquidity. That can push a realised exit away from the configured trigger. It is in every engagement agreement in plain language. We would rather say it up front than explain it after the fact.
The parameter is not changed mid-period. If a change is needed, both sides sign an addendum.
IV
20% of net new profit above prior peak. Crystallised monthly.
The performance fee is calculated on a high-water mark basis. 20% of net new profit above the prior peak account value. Periods that end below the peak generate no fee.
No management fee. The firm is paid when the client is making new money, and only then.
Fees are invoiced separately against signed exchange statements. The client verifies every invoice against their own broker data before paying.
V
Engagement agreement. Signed in duplicate. Versioned.
Every mandate is governed by a written engagement agreement. It specifies capital base, leverage cap, instrument set, risk collar, performance fee, and termination terms.
Agreements are versioned. If the template changes, the new version applies to new mandates only. Existing clients do not get retroactive changes without their signature.
The Hebrew text is currently the controlling instrument, pending Algonet's NFA Commodity Trading Advisor (CTA) registration. Once that registration is in place, the English version becomes the controlling instrument for non-Israeli clients. Translations are provided for reference.
Engagement
Mandates are accepted from qualified investors with stated risk capital of $100,000 or above. Smaller enquiries get a brief reply. Every introduction is answered within ten business days.