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Lead traders: Trader profit sharing rules

Published on Sep 4, 2023Updated on Sep 24, 20245 min read

Copy traders share up to 30% of profits earned through copy trading with the lead trader that they’re copying, based on lead trader levels.

Profit sharing rules

  1. 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.

  2. 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.

  3. 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

The total profit from all profitable positions was 1100 USDT, meaning that 110 USDT was deducted as a daily withholding amount. However, after the losses from other positions are factored in, the total profit made during the cycle by Copy Trader A was 550 USDT. During settlement, 10% of this, or 55 USDT, is shared with Lead Trader A, and the remaining 55 USDT is returned to Copy Trader A’s trading account.

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.

Lead trader profit share en