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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).



Expected Profit Share Calculation Rules

  • 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 USDT


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Enjoy trading on MEXC.

The MEXC Team