HTX Copy Trading: New Profit Sharing Settlement Explained
- Copy Trading Guides
1. Eligibility
The settlement only takes place when all copy trading orders placed by a follower have been closed, indicating that the follower has no open positions associated with their lead trader. If there are still open copy trading orders connecting the follower and their lead trader, no settlement will occur when the settlement day comes. Instead, it will be postponed until all orders are closed, with settlement proceeding on the subsequent settlement day.
2. Settlement Cycle
Settlement Time: Every Monday at 00:00:00 (UTC+8).
Profit Sharing Settlement Period: The settlement period spans one natural week, from 00:00:00 (UTC+8) every Monday to 23:59:59 (UTC+8) every Sunday.
3. The system sorts out the PnL of each copy trading order placed by the follower during the settlement period and calculates the total net PnL. For each profitable copy trading order, the system will pre-deduct a corresponding amount and allocate it for profit sharing. However, no deductions will be made for losing orders. At the time of settlement, if the pre-deducted amount exceeds the actual share for the lead trader, the excess amount will be refunded to the follower's account, while the actual profit share will be credited to the trader's account.
4. Effective Date of the New Rules: We plan to update the new profit sharing settlement method on June 5, 2024 (UTC).
Scenario 1: Prior to the settlement time, all copy trading orders placed by a follower have been closed within the settlement period.
Let's say Trader A initiates multiple trades, with the profit sharing ratio set at 10%. The following table outlines the status of Follower B, who mirrors Trader A's trades.
| Time |
Follower B's Copy Trading History |
Follower B's Daily PnL (Excluding Trading Fees) |
Daily Pre-deducted Amount for Profit Sharing |
| January 1 (Monday) |
Placed 6 copy trading orders, none of which have been closed. |
0 USDT |
0 USDT |
| January 2 (Tuesday) |
One order was closed, with no new orders placed that day. |
+100 USDT |
10 USDT |
| January 3 (Wednesday) |
One order was closed, with no new orders placed that day. |
+200 USDT |
20 USDT |
| January 4 (Thursday) |
One order was closed, with no new orders placed that day. |
-100 USDT |
0 USDT |
| January 5 (Friday) |
One order was closed, with no new orders placed that day. |
-100 USDT |
0 USDT |
| January 6 (Saturday) |
Two orders were closed, with no new orders placed that day. |
+100 USDT |
10 USDT |
| January 7 (Sunday) |
No trading activity |
0 USDT |
0 USDT |
| Settlement
|
Settlement can now proceed, as all copy trading orders placed by Follower B have been closed within the settlement period: Jan 1-7 (Monday to Sunday) Follower B's Net PnL (Jan 1-7): 100+200-100-100+100=200 USDT Pre-deducted Amount for Profit Sharing (Jan 1-7): 10+20+10=40 USDT Actual Profit Shared by Trader A: 200 × 10%=20 USDT Amount Refunded to Follower B's Account: 40-20=20 USDT |
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Scenario 2: Prior to the settlement time, not all copy trading orders placed by a follower have been closed within the settlement period.
Let's say Trader C initiates multiple trades, with the profit sharing ratio set at 10%. The following table outlines the status of Follower D, who mirrors Trader C's trades.
| Time |
Follower D's Copy Trading History |
Follower D's Daily PnL (Excluding Trading Fees) |
Daily Pre-deducted Amount for Profit Sharing |
| January 1 (Monday) |
Placed 6 copy trading orders, none of which have been closed. |
0 USDT |
0 USDT |
| January 2 (Tuesday) |
One order was closed, with no new orders placed that day. |
+100 USDT |
10 USDT |
| January 3 (Wednesday) |
One order was closed, with no new orders placed that day. |
+100 USDT |
10 USDT |
| January 4 (Thursday) |
No trading activity |
0 USDT |
0 USDT |
| January 5 (Friday) |
No trading activity |
0 USDT |
0 USDT |
| January 6 (Saturday) |
No trading activity |
0 USDT |
0 USDT |
| January 7 (Sunday) |
No trading activity |
0 USDT |
0 USDT |
| Settlement |
As of the settlement time, 4 out of the 6 copy trading orders placed by Follower D haven't been closed yet. Therefore, no settlement will occur for the settlement period: Jan 1-7 (Monday to Sunday) Follower D's Net PnL (Jan 1-7): 100+100=200 USDT Pre-deducted Amount for Profit Sharing (Jan 1-7): 10+10=20 USDT |
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| January 8 (Monday) |
One order was closed, with no new orders placed that day. |
-50 USDT |
0 USDT |
| January 9 (Tuesday) |
No trading activity |
0 USDT |
0 USDT |
| January 10 (Wednesday) |
Two orders were closed, with no new orders placed that day. |
+100 USDT |
10 USDT |
| January 11 (Thursday) |
One order was closed, with no new orders placed that day. |
+100 USDT |
10 USDT |
| January 12 (Friday) |
No trading activity |
0 USDT |
0 USDT |
| January 13 (Saturday) |
No trading activity |
0 USDT |
0 USDT |
| January 14 (Sunday) |
No trading activity |
0 USDT |
0 USDT |
| Settlement |
Follower D's Net PnL (Jan 1-7): 200 USDT Pre-deducted Amount for Profit Sharing (Jan 1-7): 20 USDT
Settlement can now proceed, as all copy trading orders placed by Follower D have been closed within the settlement period: Jan 8-14 (Monday to Sunday). Follower D's Net PnL (Jan 8-14): -50+100+100=150 USDT Pre-deducted Amount for Profit Sharing (Jan 8-14): 10+10=20 USDT
Follower D's Total Net PnL = Follower D's Net PnL (Jan 1-7) + Follower D's Net PnL (Jan 8-14) = 200+150=350 USDT Total Pre-deducted Amount = Pre-deducted Amount (Jan 1-7) + Pre-deducted Amount (Jan 8-14) = 20+20 = 40 USDT
Actual Profit Shared by Trader C: 350 × 10%=35 USDT Amount Refunded to Follower D's Account: 40-35=5 USDT |
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III. How to Check the History of Profit Shared
When the lead trader enables Trader Mode, they can check their profit earned from copied trades by navigating to Copy Trading > Me > Profit Shared on HTX App.
Cumulative Profit Shared: The amount of profit shared that has been settled and distributed to the trader's account.
Last Profit Shared: The amount of profit shared from the most recent settlement period.
Est. Current Profit Shared: The amount of profit shared that the trader anticipates receiving in the upcoming settlement period.
