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Copy Trade Profit Sharing Rules

Date: 2022-09-26 05:14:52

To encourage strong trading strategies from Top Traders, we will calculate the total profit and loss made by all the copiers of a specific Top Trader in a given period, and reward a certain percentage of such profits to that Top Trader. This promotes a win-win dynamic. As a Top Trader’s performance improves, their profit share percentage increases and their maximum number of copiers will also increase.

1.Profit Share Percentage

  • All top traders get a 12% profit share. 
  • These rules may be adjusted based on the results and data gathered from copy trading after its release. Please follow our announcements or updates for any potential changes.

 

2. Profit Sharing Rules

Profit Share Period: Weekly, Every Monday at 0:00 UTC to Sunday at 23:59 UTC

Profit Sharing Rules:

  • During this weekly period, the total profit and loss of all positions opened by copiers of any given Top Trader is counted. If the resulting sum is greater than 0, then profit sharing occurs. If it is less than 0, no profit share will be distributed to the Top Trader.
  • During this period, regardless of whether the Top Trader or a copier actively closes a position, the PnL from that position will be recorded. If profitable, the system will deduct and withhold an amount equivalent to the profit share percentage. After the weekly period ends, the aggregate profit share amount for that period will be calculated. If the withheld amount is greater than the aggregate profit share amount, then the excess withheld amount will be returned to users.
  • Profit share distributions will be made in this time cycle if and only if all positions opened within that cycle are closed. If a position is closed during a later cycle, then profits from the position will be shared alongside the profit share for that later cycle. This means that during the current cycle, profit share will be distributed to Top Trader only if the copiers and Top Trader do not have any open, linked positions. Otherwise, the profit share from those positions will be delayed until the positions are closed.

Scenario 1

Top trader :Alice

Copier : Bob

Profit sharing ratio=12%

On Tuesday, Alice opens positions in BTCUSDT, ETHUSDT, and BNBUSDT trading pairs. Bob successfully copy trades her all on three positions. On Wednesday, Alice closes the BTCUSDT position, Bob makes a $500 profit on it. On Thursday, Alice closes the ETHUSDT position, Bob copies and loses $200 on it. On Friday, Bob actively closes his own BNBUSDT position and takes a $100 loss.

Then: In this cycle, Bob and Alice do not have any open, linked positions. At 23:59 UTC on Sunday, profit share calculation for this cycle begins.

Calculation Method:

Total Realized PNL=500-200-100=200

Profit sharing = Total Realized PNL * Profit sharing ratio = 200*12%= 24

At the same time, Bob’s total profits that exceed the profit share amount will be returned to him. In this scenario, Alice receives a total of $24 in profit share from Bob.

Scenario 2

Top trader: Alice

Copier: Bob

Profit sharing ratio = 12%

On Tuesday of week 1, Alice opened positions in BTCUSDT and ETHUSDT which Bob successfully copied. On Friday of week 1, Alice closed BTCUSDT position, which Bob copied and made $350 profit. ETHUSDT positions as not closed in the first week.

On Monday of week 2, Alice opened BNBUSDT and SOLUSDT positions which Bob successfully copied. On Wednesday of week 2, Alice closed ETHUSDT position, which Bob copied and lost $500. On Saturday of week 2, Alice closes BNB and SOL positions, on which Bob makes $300 profit and $200 loss, respectively.

In this scenario, because Alice and Bob still have an open, linked position by the end of week 1, no profit share takes place for that cycle. That linked position is closed on Wednesday of week 2. After closing it:

Total Realized PNL=350-500=-150< 0

Since the total profit from week 1 was negative, profit share amount is 0.

For the week 2 cycle, Bob’s total PnL is:

Total Realized PNL=300-200=100> 0

Profit sharing = Total Realized PNL * Profit sharing ratio = 100*12%= 12

Profit share amount for week 2 is $12.

Therefore, at the end of week 2, calculations will occur for both week 1 and 2 cycles and the final profit share amount is 0+12=12。

 

If there are any adjustments to profit sharing rules, this document will be updated and it may also be mentioned via our platform announcements.

 

For any inquiries contact us at support@phemex.zendesk.com

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