Traders: Profit Sharing Rules

AscendEX's copy trading product employs a profit-sharing mechanism to incentivize traders. The profit-sharing ratio is set at 10%, which means that traders can earn 10% of the realized net profits generated by their followers.

I.  Profit Sharing Rules

1.     Profit sharing percentage

AscendEX offers a profit-sharing percentage of 10% for its copy trading products.

• The profit-sharing percentage of 10% applies to all traders.
• Profit sharing is applicable only when the total realized profits of the copy trading positions exceed 0.5 USDT. In other words, the total profits, after subtracting total losses, must be greater than or equal to 0.5 USDT for profit sharing to take place. If a follower incurs losses or their total realized profits are less than 0.5 USDT, no profit sharing will occur. (Total realized profits refer to the sum of profits from multiple positions copied by the follower.)
• The amount of profit sharing is calculated as the total net realized profits multiplied by 10%. Total net realized profits are determined by subtracting trading fees from the profit amount.) 

2.     Settlement period

AscendEX's profit-sharing settlement for its copy trading products occurs daily between 12:00 AM and 12:10 AM (UTC). To be eligible for profit-sharing settlement, the follower must not have any open positions associated with the trader. In other words, all positions opened by the follower, which follow the trader, must be closed before the settlement time.

• However, if the follower closes any open positions, which are associated with the trader on that day, the system will conduct a corresponding profit-sharing settlement between 12:00 AM and 12:10 AM (UTC) on the next day.
• If all positions opened by the follower following the trader are not closed on the day, the system will not conduct profit-sharing settlement during the fixed period between 12:00 AM and 12:10 AM (UTC) the next day. For positions closed on the day, only profit-sharing calculations will be made without actual profit-sharing. The profit-sharing settlement will occur when the follower closes all follow positions, and it will take place between 12:00 AM and 12:10 AM (UTC) the next day after the closure.

3.     Settlement account

AscendEX's copy trading products do not have a distinct profit-sharing settlement account. Instead, profit-sharing settlements will be carried out directly within the futures account.

4.     Calculating profit sharing

The system will diligently track and calculate the profit and loss of each position opened by a follower. For each profitable copied position, the system will deduct 10% as the profit-sharing amount in advance. Subsequently, during the daily settlement period from 12:00 AM and 12:10 AM (UTC), the profit-sharing settlement will be executed based on the overall profit and loss of these positions.

During the final settlement, if the actual profit-sharing amount that the trader should receive is lower than the amount deducted by the system in advance, the excess amount will be refunded to the follower's futures account. Simultaneously, the correct profit-sharing amount will be deposited into the trader's futures account.

II.  Profit Sharing Examples

To provide a clearer understanding of AscendEX’s copy trading profit-sharing rules, the following examples can be referenced.

Scenario 1

Referring to the table provided, let's consider a scenario where a follower is currently following a trader and has opened a total of three positions. Upon closing these positions, the accumulated total profits amount to 200 USDT, which exceeds the minimum requirement of 0.5 USDT for profit-sharing eligibility. Based on the 10% profit-sharing rule, the final profit to be paid to the trader is 20 USDT.

It is important to note that the system has already deducted the profits of 20 USDT from the individual profitable positions (=4.5 USDT + 2 USDT + 13.5 USDT) prior to the final settlement. Therefore, 20 USDT represents the amount the trader will ultimately receive as profit-sharing.

Scenario 2

Based on table provided, let’s consider a situation where the follower currently holds three positions. The cumulative total profits from these positions amount to 160 USDT, which exceeds the minimum threshold of 0.5 USDT, thus qualifying for profit-sharing. With a profit sharing percentage of 10%, the final payment to the trader would be 16 USDT.

In this scenario, upon closing position 1, and advanced deduction of 4.5 USDT is made for profit sharing. Subsequently, after closing position 2, which incurred a loss of 20 USDT, the remaining profit to be shared decreases by 2 USDT. Lastly, upon closing position 3, which resulted in a profit, 13.5 USDT is deducted. Ultimately, the trader is entitled to receive a final profit-sharing amount of 16 USDT.

Scenario 3

Based on the table provided, let’s consider a scenario where a follower is currently following a trader and has opened three positions. However, upon closing these positions, the cumulative total profits amount to -200 USDT, which is less than the minimum requirement of 0.5 USDT. As per the profit-sharing rules, profit-sharing is exclusively applicable to profitable positions. Therefore, in this case, since the net profits of the followers positions are negative, no profit sharing will be conducted.

It is important to note that profit sharing is calculated based only on the positive net profit of the follower's positions, and the net profit must be equal to or greater than 0.5 USDT to be eligible for profit-sharing.