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