FAQ

CoinCatch One-Click Copy Trading: Profit-Sharing for Traders

1. Trader Profit-sharing ratio

Elite Trader Level Benefits
The higher the level, the greater the earnings. Elite Traders at each level can unlock exclusive benefits and rewards associated with their level.

Elite Trader Levels Cadet Pro Guru Master Legend
Max Profit Sharing Ratio 10% 13% 15% 20% 25%
Maximum Limit of followers 500 500 750 750 1,000

*The maximum profit-sharing ratio in the table above refers to the highest profit-sharing percentage an Elite Trader can set (non-Private Mode).
*The maximum follower limit refers to the highest number of followers an Elite Trader at this level can have. This limit depends on the equity requirements of the Elite Trader's contract or spot account.

2. Settlement Method

1) When a trader closes a position, if the follower has generated profits and meets the profit-sharing requirements, the system will deduct the estimated profit from the follower’s account in advance. Settlement will take place at 00:00 AM (UTC+8) the next day, calculating the actual total profit of the follower's copy trading for the day, which is the profit-sharing amount payable to the trader.

2) If the actual profit-sharing amount is lower than the previously deducted profit-sharing amount from the follower's account, the excess profit-sharing amount will be refunded to the follower's account, and the remaining portion will be settled with the trader.

3) If the trader's copy trading contract is a coin-based contract, the profit-sharing will be distributed in the corresponding cryptocurrency. It will be converted to USDT on the profit-sharing page in the app based on the exchange rate at the time of distribution.

4) Estimated Pending Profit-sharing (USDT): All profit-sharing earned from copying orders is converted to USDT for display. The estimated pending profit-sharing is a dynamic value and may decrease when a follower closes a losing copy trading position.

5) Yesterday's Profit-sharing (USDT): Calculated by the system every day at 00:00 AM (UTC+8) , it represents the profit-sharing paid to the trader for profits generated by followers' closed positions on the previous day).

6) Accumulated Profit-sharing (USDT): All profit-sharing already paid out is converted to USDT for display. Profits will be distributed in the same currency as the one used as margin by the follower.

3. Profit-Sharing Requirements

1) If the follower is not following any open positions of the trader (meaning all copied orders of the user have been closed that day), the profit-sharing will be distributed the next day.
2) If a user has unclosed copied orders, profit-sharing will not be paid until all positions are closed, and profit-sharing will be calculated collectively the next day.

4. Profit-Sharing Account

The futures account used by the trader to receive the shared profit should be the same as what he uses to initiate a copy trade.
For example, if a trader's copy trading contract is a perpetual BTCUSDT contract, the trader's BTCUSDT futures account will receive profit-sharing the next day. If the trader's copy trading contract is an XRPUSD perpetual contract, the trader's XRPUSD futures account will receive profit-sharing the next day.

5. Example Illustration

"Estimated Pending Profit-sharing" comprises shareable profits from both historical closed orders and orders closed on the current day.
If the profit from the closed positions is positive, the estimated profit-sharing for the day is expected to grow. If the profit from the closed positions is negative, the estimated profit-sharing for the day is expected to decrease.
Example: User A/B/C/D follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract.
Scenario 1: User A follows Trader M and opens an XRP coin-based perpetual contract, making a profit of 10 XRP. Prior to the settlement time, User A closes all positions.
In this case, 10 XRP * 8% = 0.8 XRP will be deducted from the follower’s account in advance. Then, on the next day at settlement time, the trader receives a profit-sharing of 0.8 XRP. If the XRP exchange rate at the time of distribution is 1 USD, the profit-sharing page will display an accumulated profit-sharing of 0.8 USDT.
Scenario 2: User B follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract. They make a profit of 30 USDT in the BTCUSDT perpetual contract, 20 USDT in the ETHUSDT perpetual contract, and incur a loss of 10 XRP in the XRP coin-based perpetual contract. Before settlement time, User B closes all positions.
Estimated profit-sharing deduction: 30 USDT * 8% + 20 USDT * 8% - 10 XRP * 8%. If the XRP exchange rate is 1 USD at the settlement, the trader receives 3.2 USDT as profit-sharing the next day.
Scenario 3: User C follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract. They make a profit of 30 USDT in the BTCUSDT perpetual contract, 20 USDT in the ETHUSDT perpetual contract, and incur a loss of 5 XRP in the XRP coin-based perpetual contract. Before the settlement time, User C closes profitable orders but leaves the losing orders unclosed.
Estimated profit-sharing deduction: 30 USDT * 8% + 20 USDT * 8%. No profit-sharing is allocated to the trader the next day. If User C closes the losing orders on the third day and the XRP exchange rate at the settlement is 2 USD, the trader will receive 3.2 USDT as profit-sharing on the fourth day.
Scenario 4: User D follows Trader M and opens positions in three contracts: BTCUSDT perpetual contract, ETHUSDT perpetual contract, and XRP coin-based perpetual contract. Before the settlement time, User D leaves profitable and losing orders unclosed.
In this case, no profit will be deducted from the follower’s account in advance.

6. Special cases of trader profit-sharing

1) In normal circumstances, when a trader closes a position and the followers generate profits meeting the profit-sharing requirements, the system will deduct the profit-sharing from the followers' accounts in advance and settle it at 00:00 AM (UTC+8) the next day.
2) In special cases, to safeguard the interests of the followers, if pre-deduction might lead to liquidation or unfavorable positions for the followers, the system will refrain from pre-deduction, and the trader will not receive profit-sharing from that particular order.
3) Please rest assured that such special circumstances only happen under extreme conditions with very low possibility. The general profit-sharing rule is not affected.

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CoinCatch Team