Explanation of Copy Trading Profit Share Rules
Overview
On the “My Lead Trades” page, under the [Profit Share Stats] tab, you can see the data pertaining to profit sharing.
Total Profit Share: The settlement period for the past 24 hours is at 16:00 (UTC) on the current day. The profit generated from followers’ closed positions is settled within the period from the previous day at 16:00 (UTC) to the current day at 16:00 (UTC). Profit sharing will only occur if the total PNL of followers within the settlement period is greater than 0.
Expected Profit Share: As of the current time, (Realized PNL + Unrealized PNL of all followers' positions) * Profit share ratio. Actual profit share is based on the profit share at the time of settlement.
Profit Share Ratio: By default, the profit share ratio after applying to become a trader is 10%. Clicking the icon allows you to apply for modifying the profit share ratio, within the range of 1%~15%. Actual profit share is based on the profit share at the time of settlement.
Profit Share History: Display the trader's historical profit share and profit share details.
Profit Share Calculation Rules
Profit sharing with the trader will only occur if the total realized PNL of the followers' closed copy trade positions is greater than 0.
Partially closed copy trade positions will not be included in profit share calculations.
Profit Share Settlement Time: Profit share is settled daily, with settlements occurring between 16:00 and 17:00 (UTC) each day, settling the profit share for the previous 24 hours. The profit share settlement process requires some time, typically completed before 17:00 (UTC).
Profit Share Calculation Rules:
Pre-Freeze: To ensure the profit share earnings of the trader, when a follower's copy trade position is completely closed, if the realized PNL is greater than 0 (otherwise no pre-freeze will be carried out), the system will pre-freeze a portion of the profit funds into the system's intermediary account according to the profit share ratio.
Actual Profit Share: The profit share for the previous 24 hours will be settled daily between 16:00 and 17:00 (UTC). Calculate the total realized PNL of the copy trade positions that were completely closed the previous day. If the result is greater than 0, proceed with profit sharing; otherwise, no profit sharing will occur.
Calculation Formula: The trader's actual profit share for the day = the total sum of PNL realized by all copy trade positions of their followers * Profit share ratio.
If there are multiple followers, then individual calculations need to be performed and subsequently aggregated.
Return of Pre-Freeze Funds: The sum of pre-freeze - Trader's actual profit share for the day (According to the profit share rules, the sum of pre-freeze may be greater than the trader's actual profit share. The remaining portion after profit sharing to the trader needs to be returned to the follower's sub-account USDT-M futures wallet).
Trader’s expected profit share for the current day = (Realized PNL + Unrealized PNL) of the trader’s follower * Profit share ratio. If the trader has multiple followers, the estimated profit share for each individual follower is calculated and then aggregated. Expected profit share is updated every 5 minutes The expected profit share is for reference only. Actual profit share is based on the profit sharing at the time of settlement. Reference Example: Trader A (profit share ratio 10%) only has 1 follower, Follower B. The trader opened 2 copy trade positions on the same day (the follower also followed the 2 positions). Subsequently, one of the copy trade positions of the follower was closed, while the other remains open. Follower B's closed copy trade position has a realized PNL of 100 USDT. The other copy trade position the follower is still holding has a realized PNL of -10 USDT (after deducting trading fees and funding costs), and an unrealized PNL of 220 USDT. In this case, the expected profit share of Trader A = (100-10+220) * 10% = 31 USDTExpected Profit Share Calculation Rules
Enjoy trading on MEXC.
The MEXC Team