1) When a trader closes a position, if the follower has generated profits and meets the profit-sharing requirements, the system will deduct the estimated profit from the follower’s account in advance. Settlement will take place at 00:00 AM (UTC+8) the next day, calculating the actual total profit of the follower's copy trading for the day, which is the profit-sharing amount payable to the trader.
2) If the actual profit-sharing amount is lower than the previously deducted profit-sharing amount from the follower's account, the excess profit-sharing amount will be refunded to the follower's account, and the remaining portion will be settled with the trader.
3) If the trader's copy trading contract is a coin-based contract, the profit-sharing will be distributed in the corresponding cryptocurrency. It will be converted to USDT on the profit-sharing page in the app based on the exchange rate at the time of distribution.
4) Estimated Pending Profit-sharing (USDT): All profit-sharing earned from copying orders is converted to USDT for display. The estimated pending profit-sharing is a dynamic value and may decrease when a follower closes a losing copy trading position.
5) Yesterday's Profit-sharing (USDT): Calculated by the system every day at 00:00 AM (UTC+8) , it represents the profit-sharing paid to the trader for profits generated by followers' closed positions on the previous day).
6) Accumulated Profit-sharing (USDT): All profit-sharing already paid out is converted to USDT for display. Profits will be distributed in the same currency as the one used as margin by the follower.
3. Profit-sharing requirements
1) If the follower is not following any open positions of the trader (meaning all copied orders of the user have been closed that day), the profit-sharing will be distributed the next day.
2) If a user has unclosed copied orders, profit-sharing will not be paid until all positions are closed, and profit-sharing will be calculated collectively the next day.
4. Profit-sharing account
The futures account used by the trader to receive the shared profit should be the same as what he uses to initiate a copy trade.
For example, if a trader's copy trading contract is a perpetual BTCUSDT contract, the trader's BTCUSDT futures account will receive profit-sharing the next day. If the trader's copy trading contract is an XRPUSD perpetual contract, the trader's XRPUSD futures account will receive profit-sharing the next day.
"Estimated Pending Profit-sharing" comprises shareable profits from both historical closed orders and orders closed on the current day.
If the profit from the closed positions is positive, the estimated profit-sharing for the day is expected to grow. If the profit from the closed positions is negative, the estimated profit-sharing for the day is expected to decrease.
Example: User A/B/C/D follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract.
Scenario 1: User A follows Trader M and opens an XRP coin-based perpetual contract, making a profit of 10 XRP. Prior to the settlement time, User A closes all positions.
In this case, 10 XRP * 8% = 0.8 XRP will be deducted from the follower’s account in advance. Then, on the next day at settlement time, the trader receives a profit-sharing of 0.8 XRP. If the XRP exchange rate at the time of distribution is 1 USD, the profit-sharing page will display an accumulated profit-sharing of 0.8 USDT.
Scenario 2: User B follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract. They make a profit of 30 USDT in the BTCUSDT perpetual contract, 20 USDT in the ETHUSDT perpetual contract, and incur a loss of 10 XRP in the XRP coin-based perpetual contract. Before settlement time, User B closes all positions.
Estimated profit-sharing deduction: 30 USDT * 8% + 20 USDT * 8% - 10 XRP * 8%. If the XRP exchange rate is 1 USD at the settlement, the trader receives 3.2 USDT as profit-sharing the next day.
Scenario 3: User C follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract. They make a profit of 30 USDT in the BTCUSDT perpetual contract, 20 USDT in the ETHUSDT perpetual contract, and incur a loss of 5 XRP in the XRP coin-based perpetual contract. Before the settlement time, User C closes profitable orders but leaves the losing orders unclosed.
Estimated profit-sharing deduction: 30 USDT * 8% + 20 USDT * 8%. No profit-sharing is allocated to the trader the next day. If User C closes the losing orders on the third day and the XRP exchange rate at the settlement is 2 USD, the trader will receive 3.2 USDT as profit-sharing on the fourth day.
Scenario 4: User D follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract. Before the settlement time, User D leaves profitable and losing orders unclosed.
In this case, no profit will be deducted from the follower’s account in advance.
6. Special cases of trader profit-sharing
1) In normal circumstances, when a trader closes a position and the followers generate profits meeting the profit-sharing requirements, the system will deduct the profit-sharing from the followers' accounts in advance and settle it at 00:00 AM (UTC+8) the next day.
2) In special cases, to safeguard the interests of the followers, if pre-deduction might lead to liquidation or unfavorable positions for the followers, the system will refrain from pre-deduction, and the trader will not receive profit-sharing from that particular order.
3) Please rest assured that such special circumstances only happen under extreme conditions with very low possibility. The general profit-sharing rule is not affected.
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