Rules for Copy Trading Profit Sharing on ArithFi
As an ArithFi copy trader, you can earn a specific percentage of the net profits earned by each of your followers.
Rules for profit sharing
ArithFi Copy Trade Profit Sharing feature is live, where traders can share the profits from copy trading. Below are the rules and settlement details of profit sharing.
- The system will calculate the profit and loss for each copied order and add them up during the settlement.
- When closing the position, the system will pre-deduct 10% of the profit for each profitable order. On the day of profit sharing settlement, if the total pre-deduct profit sharing > trader's actual profit sharing, the excess will be refunded to the follower’s account.
- Profit sharing only occurs when both the follower and trader close their copied orders. The settlement date will not be carried out until all copied orders are closed.
- The settlement cycle of the copy trading system is once every 7 days. Profit sharing will be calculated and updated every Monday at 00:00 (UTC).
- Daily P&L update time: 00:00 (UTC), orders opened after this time will be counted in the next P&L calculation cycle.
Time
- Profit sharing update time: Every Sunday at 16:30 (UTC)
- Profit sharing settlement time: Every Sunday at 17:00 (UTC)
- Daily P&L update time: Everyday at 00:00 (UTC)
Example of profit sharing calculation
When closing the position, the system will calculate the total profit and loss of 350 ATF generated during the follower's settlement cycle. The actual profit that should be distributed to the trader are 350 * 10% = 35 ATF, but the follower's 50 ATF has been deducted in advance. During settlement, 35 ATF will be allocated to the trader's account, and the extra 35 ATF deducted will be returned to follower's account.
Note: The follower and trader must have no copy trading positions opened at settlement time otherwise settlement will be postponed to the following settlement cycle.