Profit-Sharing Model

Our Profit Sharing Method ensures fair distribution of profits between Master Traders (strategists) and Copiers (followers). This system rewards Master Traders for their successful strategies while maintaining transparency and flexibility for all users.

Key Features of the Profit Sharing System

1. Master-Defined Profit Sharing Options
   • Master Traders can choose between two profit sharing models:
     a) Percentage of Profit
     b) Fixed Amount per Week
   • Masters can set their preferred rate, up to a maximum of 30% for percentage-based sharing.
2. Master-Defined Minimum Balance
   • Master Traders set a minimum balance requirement for Copiers to start copy trading.
   • Copiers must deposit this amount to activate copy trading.
3. Weekly Settlement Period
   • The system operates on a weekly cycle:
     • Start: Every Monday at 00:00 (UTC)
     • End: Every Saturday at 24:00 (UTC)
   • Profits are calculated and payments processed at the end of each week.
4. Profit Calculation
   • Only realized profits from closed trades during the settlement period are considered.
   • Net Profit =Position P&L – Fees to Open – Fees to Close
5. Locked Balance for Profit Sharing
   • For percentage-based sharing, the system locks the specified percentage of the Copier’s profit.
   • For fixed amount sharing, the system locks the pro-rated daily amount.
   • Copy trading pauses if the locked amount exceeds the Copier’s available balance.
6. Payment Processing
   • Payments to Master Traders are processed every Saturday at 24:00 (UTC).
   • The locked profit share is deducted from the Copier’s balance and credited to the Master Trader.
7. New Trading Period
   • A new trading period begins every Monday at 00:00 (UTC).
   • Copiers can continue if their balance meets the minimum requirement.

Example Workflows

Percentage-Based Profit Sharing:

1. Master Trader sets 20% profit sharing and $500 minimum balance.
2. Copier deposits $500 and follows the Master’s trades for a week.
3. Copier earns $1,000 in net profit.
4. System locks $200 (20% of $1,000) in the Copier’s account.
5. On Saturday at 24:00 (UTC), $200 is sent to the Master Trader.

Fixed Amount Profit Sharing:

1. Master Trader sets $100/week fixed profit sharing and $1,000 minimum balance.
2. Copier deposits $1,000 and follows the Master’s trades for a week.
3. System locks $14.29 daily ($100 ÷ 7 days).
4. On Saturday at 24:00 (UTC), $100 is sent to the Master Trader, regardless of profit.

Important Notes

• Profit sharing only applies to realized profits from closed positions.
• If a Copier’s balance falls below the required minimum or can’t cover locked amounts, copy trading pauses until the account is replenished.
• Master Traders can adjust their profit sharing terms, but changes only affect new copied trades.
• The system provides full transparency, with detailed profit sharing information and transaction history available to both Master Traders and Copiers.

Future Enhancements for Live Version

1. KYC Implementation
   • Know Your Customer (KYC) verification for all users to ensure security and prevent misuse.
2. Advanced Security Measures
   • Device fingerprinting and IP tracking to prevent banned users from creating new accounts.
   • Global blacklist to track non-compliant users across platforms.
3. Reputation System
   • Public ratings for Masters and Copiers based on performance and compliance with profit sharing rules.

Why This Model Works

• Flexibility: Master Traders can choose their preferred compensation method.
• Fairness: Rewards are based on actual realized profits or agreed-upon fixed amounts.
• Transparency: Weekly settlements and clear profit calculations ensure all parties understand the process.
• Scalability: The system can accommodate additional features like KYC, reputation tracking, and enhanced analytics.