3EX AI Copy Trading system provides users with a mechanism to adopt strategies from exceptionally performing traders in the market and profit from them. This system has been specially designed with a set of profit-sharing rules to ensure fair profit distribution between strategy creators and followers.
Detailed Explanation of Profit-sharing Rules
Definition of the Profit Sharing Period
- Time Range: The calculation of profit-sharing covers all trading events from 00:00 to 23:59:59 (UTC+8) daily, ensuring every AI Copy Trading is included in the statistics.
- Settlement Time: To ensure accurate calculation of profit-sharing, the system will carry out the actual settlement and distribution at 12:00 (UTC+8) the following day, ensuring the accuracy of data.
Specific Conditions for Profit-sharing Distribution
- Close Position Requirement: All follow trades must have been closed, ensuring the calculation of profit sharing is based on complete and definite trading outcomes.
- Delay Mechanism: If there are open trades within the settlement period, the execution of profit-sharing will be postponed to the next settlement period until the close position requirement is met.
Profit-sharing Calculation Method
- Pre-Profit Sharing: After stopping a strategy, the system will preliminarily deduct a profit-sharing amount from the profitable follow trades.
- Actual Profit-sharing = Net Profit/Loss * Profit-sharing Ratio
- Refund Amount = Pre-Profit Sharing - Actual Profit-sharing
- If a strategy creator stops their strategy or a follower stops following within the period, the refunded amount after the next day's settlement goes directly back to the follower’s AI account, not the strategy sub-account.
Process of Profit-sharing Orders
- Deduction Mechanism: All orders first deduct the necessary futures trading base fees. AI Copy Trading itself does not incur any fees, with the deduction of fees ensuring the platform can continue to provide high-quality service.
- Profit-sharing Distribution: The remaining net-profit is distributed according to the profit-sharing ratio set by the strategy creator, with the profit-sharing amount accurately credited to the strategy creator’s spot account.
- In the settlement process, if the pre-deducted profit-sharing amount exceeds the actual profit-sharing entitled to the leader trader based on actual profits, the system will automatically return the excess to the strategy margin, ensuring followers' funds are not improperly used.
Setting of Profit Sharing Ratio
- The profit-sharing amount for followers will be calculated based on the profit-sharing ratio set by the strategy creator, which can be autonomously adjusted by the strategy creator from 1% to 25%.
Example of Profit Sharing Settlement Process
For example, a follower conducted the following BTC/USDT trade on January 17, 2024:
Trading Pairs | Trading History | Closing Net Profit/Loss | Pre Profit-sharing Amount(10% Ratio) |
BTC/USDT(Long) | Opening Time: 2024.01.17 08:38 Closing Time: 2024.01.17 08:50 |
+400USDT | 40USDT |
BTC/USDT(Short) | Opening Time: 2024.01.17 09:48 Closing Time: 2024.01.17 10:50 |
-50USDT | 0 |
BTC/USDT(Long) | Opening Time: 2024.01.17 11:48 Closing Time: 2024.01.17 15:50 |
+100USDT | 10USDT |
BTC/USDT(Short) | Opening Time: 2024.01.17 19:40 Closing Time: 2024.01.17 20:33 |
-200USDT | 0 |
Settlement Period | 2024.01.17 23:59:59(UTC+8) | / | / |
Net Profit/Loss for the Settlement Period: 400 - 50 + 100 - 200 = 250 USDT Total Pre-Deducted Amount: 40 + 10 = 50 USDT Actual Profit Sharing Amount: 250 × 10% = 25 USDT Refund to Followers: 50 - 25 = 25 USDT |
Long Position Profit of 400 USDT: A morning trade, with 40 USDT pre-deducted as profit sharing. Short Position Loss of 50 USDT: A forenoon trade, with no pre-deduction for profit sharing. Long Position Profit of 100 USDT: A noon trade, with 10 USDT pre-deducted as profit sharing. Short Position Loss of 200 USDT: An evening trade, with no pre-deduction for profit sharing. |
Net Profit/Loss and Profit-sharing Calculation
- Net Profit/Loss Period: By subtracting losses from profits, a net profit/loss of 250 USDT is achieved.
- Total Pre-Deducted Amount: The total pre-deducted amount for profitable trades is 50 USDT.
- Actual Profit-sharing Amount: Based on the net profit/loss of 250 USDT, 25 USDT is calculated as the profit-sharing amount.
- Refund to Followers: The excess deduction of 25 USDT is refunded to the followers, ensuring fairness.
3EX AI Trading strategy creator Profit Sharing Ratio
In the 3EX AI Copy Trading system, the profit-sharing ratio for strategy creators is set by default to 25%. This means that strategy creators can receive up to 25% of the profits from each profitable trade made by their followers. This ratio is determined based on the platform's standard settings and market conventions, aimed at maximizing the incentives for strategy creators. However, recognizing that different strategy creators may have different profit-sharing needs and strategies, the 3EX AI trading platform offers flexible ratio adjustment options. strategy creators can adjust this ratio according to their own strategies and target market positioning, but it must be within the specified range.
- Minimum Ratio: strategy creators can set the profit-sharing ratio as low as 1%, suitable for those wishing to attract more followers or who have lower profit-sharing requirements.
- Maximum Ratio: The upper limit of the profit-sharing ratio is 25%, which is the highest profit-sharing standard allowed by the platform, ensuring that strategy creators receive corresponding rewards while providing high-quality trading strategies.
Through such settings, 3EX AI trading platform ensures a balance of interests between strategy creators and followers, while also providing enough flexibility to accommodate different traders’ strategies and styles.
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