Lead traders: Trader profit sharing rules
Copy traders share up to 13% of profits earned through copy trading with the lead trader that they’re copying, based on lead trader profit-sharing levels. Profit sharing levels will be calculated based on a 90-day average instead of the previous 30-day average starting from 6 September 2023.
Profit sharing rules
The system will calculate the profit and loss of each copied order, and these will cancel each other out during settlement. For profitable copy trades, after trading fees have been deducted, a percentage of the copy trader's net profits will also be deducted. If due to losses in some orders, the total profit share that a copy trader actually owes a lead trader is less than the amount deducted, the excess will be returned to their trading account on the settlement date. The remaining amount will be credited to the lead trader’s funding account.
Profit sharing will only take place if the copy trader and lead trader no longer have any linked positions, that is, when all copy orders have been closed. If this isn’t the case, profits won’t be shared on the settlement date but will wait until the copy trader and lead trader have no linked positions.
The OKX settlement cycle of the copy trading system is weekly from every Monday 00:00 (UTC+8) to Sunday 23:59:59 (UTC+8). Profit sharing will be calculated every Monday at 00:00 (UTC+8). The weekly profit share will take effect from 10 September 2023.
Example
Lead Trader A has created a number of lead orders with the contracts BTCUSDT, ETHUSDT, and ETCUSDT. The current profit-sharing level of Lead Trader A is L2 with a profit-sharing ratio of 10%. The trading history of Copy Trader A, who is copying them, is as follows.
| Date | Trade records | Profit and loss after fees | Witholding amount (10% of profits) |
|---|---|---|---|
| Mon, April 17 | BTCUSDT long position Opened: April 1, 2023 Closed: April 17, 2023 |
+200 USDT |
20 USDT |
| Tues, April 18 |
BTCUSDT long position Opened: April 6, 2023 Closed: April 18, 2023 ETHUSDT short position Opened: April 6, 2023 Closed: April 18, 2023 |
-50 USDT +300 USDT |
0 30 USDT |
| Wed, April 19 | Didn’t open or close positions Ongoing positions: BTCUSDT long position Opened: April 6, 2023 Not yet closed ETCUSDT short position Opened: April 6, 2023 Not yet closed |
N/A | N/A |
| Thur, April 20 | ETCUSDT short position Opened: April 6, 2023 Closed: April 20, 2023 |
-500 USDT | 0 |
| Fri, April 21 | Didn’t open or close positions Ongoing positions: BTCUSDT long position Opened: April 6, 2023 Not yet closed ETCUSDT short position Opened: April 6, 2023 Not yet closed |
N/A | N/A |
| Sat, April 22 | ETCUSDT short position Opened: April 6, 2023 Closed: April 22, 2023 |
+500 USDT |
50 USDT |
| Sun. April 23 | BTCUSDT short position Opened: April 6, 2023 Closed: April 23, 2023 |
+100 USDT |
10 USDT |
| A new round of settlement cycle begins | |||
| Mon, April 24 |
ETHUSD long position Opened: April 24, 2023 Closed: April 24, 2023 |
+300 USDT | 30 USDT |
| Tues, April 25 | BTCUSDT short position Opened: April 24, 2023 Closed: April 25, 2023 |
-1000 USDT |
0 |
| On April 24 00:00 profit sharing for April 17 to 23 will be calculated as below: Net profit and loss for settlement period: 200 - 50 + 300 - 500 + 500 + 100 = 550 USDT Total withholding amount: 20 + 30 + 50 + 10 = 110 USDT Actual profit shared with lead trader: 550U × 10% = 55 USDT Returned to copy trader: 110 - 55 = 55 USDT |
|||
For Futures copy trading: Profits from each copy trader will only be settled if they aren't copying any open positions from lead traders. Otherwise, the profit-sharing process will be postponed to the next settlement period.
For Spot copy trading: If all crypto bought within the same week (Monday 0:00 UTC+8 - Sunday 23:59 UTC+8 ) is sold, all pending profit for that week will be settled. Otherwise, profit sharing will be postponed to the next settlement period.
How to check the profit-sharing amount
Lead traders can go to “Pending profits” under the Copy trading tab to view the following profit-sharing data.
- Cumulative profits shared: The total amount of profit shared with a lead trader since they joined the platform.
- Last profits shared: The profit shared with a lead trader in the most recent settlement cycle.
- Sharing ratio: Current profit sharing ratio of lead trader and can be edited for up to 3 times a month.
- Pending profits: Overall profit generated from current orders that’s expected to be shared in the next settlement cycle.
- History: A breakdown of all profits shared with a lead trader in the past.
