# No action on deposit and autocorrection on withdrawal
On deposit operations, no position is reallocated from a PAMM master account to PAMM investment accounts subscribed to it. On withdrawal operations, open positions on the PAMM master account are autocorrected (partially closed) in proportion to withdrawn amounts in order to preserve the same leverage (or margin level) on the PAMM master account.
{% hint style="warning" %}
The use of this allocation method results in the following issues:
1\. The trading performance of a PAMM master account and PAMM investment accounts subscribed to it may differ significantly because no positions are rebalanced on the accounts.\
2\. The leverage (or margin level) of a PAMM master account increases significantly compared to one of PAMM investment accounts subscribed to it. As a result, the investor reaches the stop-out limit earlier than the PAMM trader does.
It is *not* recommended that you use this allocation method unless you have a clear idea of how to manage these issues.
{% endhint %}
## **Example**
Consider PAMM investment accounts #1 and #2 that are subscribed to a PAMM master account:
`Balance on PAMM master account = 0`
`Balance on PAMM investment account #1 = 0`
`Balance on PAMM investment account #2 = 0`
### **Steps 1** – **3**
Steps 1 through 3 described in the example illustrating [reallocation on deposit and withdrawal](/copy-trading-pamm-and-mam-concepts/allocation-methods-for-pamm/reallocation-on-deposit-and-withdrawal.md) also relate to this reallocation method.
### **Step 4: Investor #2 transfers 550 USD to the PAMM investment account #2.**
During rollover, a transfer is made.
**Result:** The balances on both the PAMM investment account #2 and PAMM master account have increased by 550 USD.
`Balance on the PAMM master account = 1,000 + 550 = 1,550`
`Balance on the PAMM investment account #2 = 0 + 550 = 550`
No position is reallocated to PAMM investment accounts because this method doesn’t imply taking any actions on deposit operations.
### **Step 5: EUR/USD is now traded at the price of 1.1700.**
**Result:** The account equities have changed as follows:
`Equity of PAMM master account =`\
`= 1,550 + 1 lot * (1.1700 - 1.1555) * 100,000 = 3,000`
`Equity of PAMM investment account #1 =`\
`= 1,000 + 1 lot * (1.1700 - 1.1555) * 100,000 = 2,450`
### **Step 6: Investor 2 requests to transfer 250 USD from the PAMM investment account #2 to the wallet.**
During rollover, a transfer is made.
No autocorrection occurs because there are no open positions on the PAMM investment account #2.
**Result:** The balances on both the PAMM investment account #2 and PAMM master account have been reduced by 250 USD.
`Balance on PAMM master account = 1,550 - 250 = 1,300`
`Balance on PAMM investment account #2 = 550 - 250 = 300`
### **Step 7: Investor 1 requests to transfer 1,000 USD from the PAMM investment account #1 to the wallet.**
During rollover, a transfer is made.
Autocorrection occurs because there is an open position on the PAMM investment account #1.
**Result:** On both the PAMM investment account #1 and PAMM master account, the open position in EUR/USD for 1 lot is partially closed. The volume that is due to be closed is proportional to the ratio of the withdrawn amount (1,000 USD) to the equity of the PAMM investment account #1 (2,450 USD).\\
`Closed volume = 1 lot * 1,000/2,450 = 0.4 lots`
`Profit from 0.4 lots closed = 0.4 lots * (1.1700 - 1.1555) * 100,000 = 580`
`Balance on PAMM master account = 1,300 + 580 = 1,880`\
\
`Balance on PAMM investment account #1 = 1,000 + 580 = 1,580`
The balances on both the PAMM investment account #1 and PAMM master account are reduced by the amount of 1000 USD withdrawn from the PAMM investment account #1.
`Balance on PAMM master account = 1,880 - 1,000 = 880`
`Balance on PAMM investment account #1 = 1,580 - 1,000 = 580`
### **Step 8: The PAMM trader opens a GBP/USD position for buying 1 lot at the price of 1.3000.**
**Result:** This position is reallocated to both the PAMM investment accounts #1 and #2 (because both accounts have positive balances) in the following volumes:
`Position volume for Investor #1 = 1 lot * 1,450/1,750 = 0.83 lot`**s**
`Position volume for Investor #2 = 1 lot * 3,00/1,750 = 0.17 lots`
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