# Profit Sharing

### **Overview**

Profit sharing is the mechanism by which **lead traders (strategy providers)** earn income from the **realized profits** of their followers' trades. Profits are calculated and distributed every week, or when specific events trigger early settlement.

### **Profit Calculation and Distribution Schedule**

#### 📅 **Weekly Settlement**

* **Time:** Every **Monday at 00:00 (UTC+8)**
* **Condition:** All positions in the strategy portfolio must be **closed**.
* If **open positions** remain, settlement is **postponed** until the next eligible cycle when all trades are closed.

### **Profit Distribution Formula**

$$
\text{Distributable Profit} = \max \left\[ (\text{Total Realized Profit} \times \text{Profit Ratio}) - \text{Total Distributed} - \text{Profit Ratio Adjustment Difference},\ 0 \right]
$$

#### **Components Explained:**

* **Total Realized Profit**\
  \= Sum of all **realized profits and losses** from closed trades in the strategy portfolio.
* **Profit Ratio**\
  \= The percentage of profits shared with the lead trader (e.g., 10%, 20%).
* **Total Distributed**\
  \= Total amount already paid to the lead trader in previous settlements.
* **Profit Ratio Adjustment Difference**\
  \= Accounts for **any changes** in the profit-sharing ratio during the project period.

#### 🧮 **Profit Ratio Adjustment Formula**

If the profit ratio changes mid-project, an adjustment is applied:

Adjustment Difference=(Distributed Amount at Time of Change+Cumulative Adjustments)×New Ratio−Old RatioOld Ratio\text{Adjustment Difference} = (\text{Distributed Amount at Time of Change} + \text{Cumulative Adjustments}) \times \frac{\text{New Ratio} - \text{Old Ratio}}{\text{Old Ratio}}Adjustment Difference=(Distributed Amount at Time of Change+Cumulative Adjustments)×Old RatioNew Ratio−Old Ratio​

$$
\text{Adjustment Difference} = (\text{Distributed Amount at Time of Change} + \text{Cumulative Adjustments}) \times \frac{\text{New Ratio} - \text{Old Ratio}}{\text{Old Ratio}}
$$

This ensures fairness if profit ratios are increased or decreased while trades are still active.

### **Additional Profit Distribution Scenarios**

Besides the scheduled weekly payout, profit sharing is also triggered in the following cases:

1. **The follower manually stops copy trading.**
2. **The lead trader closes or ends the investment project.**

> In both scenarios, profits are calculated immediately based on **closed trades only**, and distributed accordingly.

### **How to View Profit Sharing Records**

Navigate to:

#### 🔎 **My Orders → Profit Section**

* **Pending Profits:** View the amount scheduled for the next settlement.
* **Historical Profits:** View previous profit distributions, including timestamps and detailed breakdowns.

### ✅ **Summary**

| Item                            | Description                                               |
| ------------------------------- | --------------------------------------------------------- |
| **Payout Frequency**            | Weekly (Monday, 00:00 UTC+8)                              |
| **Eligibility**                 | All positions must be closed to trigger payout            |
| **Early Distribution Triggers** | User stops copying OR lead trader ends the strategy       |
| **Calculation Method**          | Based on realized profits and active profit-sharing ratio |
| **Where to View**               | My Orders → Pending Profits / Historical Profits          |