💸Rewards: Follower Tiers and Profit Share Distribution

Learn about Copy Trading follower tiers, how to increase your rewards and profit distribution shares when copying on Margex.

Margex Copy Trading provides both Traders and their Followers the opportunity to mutually benefit:

Traders receive a Success Fee from profits generated when trading with their Followers’ funds. On the other hand, Followers can follow Traders’ strategies and profit without having to personally trade crypto markets.

Let’s take a look at how profit is shared between the Followers and Trader.

Follower Tiers

When following a Strategy - Followers allocate the desired amount of their personal funds into the Strategy which is added to the Total Equity of the Strategy. When the Trader performs any actions on the market, their current Followers’ ROE will be affected accordingly.

Profits made by the Strategy are allocated between the Trader (i.e the Trader's success fee) and all current Followers in accordance to the conditions which were stated in the Strategy’s Follower Tiers table (located in the Strategy Overview tab) when the Follower began following the Strategy:

5TFollowerTiers.png

Success fees are paid to the Trader only for actual profit made for the Follower as a result of successful trades

Below is an example of profit distribution based on the screenshot above.

Example #1: Profit Distribution and Success Fee Calculations

A Strategy offers the following Reward Tiers:

From $1 to $100 = 50% More than $100 = 85%

This means that if the Follower adds anywhere between $1 to $100 into the Strategy - they will receive 50% of any profits generated from their personal Equity within the Strategy, while the Trader’s success fee will be equal to 50%

• The Trader and one Follower both enroll $60 bringing the total strategy equity to $120

• The Trader then makes a profitable trade, resulting in a net profit of $12.

Based on the profit share stated in the Follower Tiers list - the Follower’s share of the profit is $6 (50%), while the Trader’s success fee will be equal to $6 (50%).

Example #2: Profit Distribution and Success Fee Calculations

A Strategy offers the following Reward Tiers:

From $1 to $100 = 50% More than $100 = 85% This means that if the Follower adds $100 or more into the Strategy - they will receive 85% of any profits generated from their personal Equity within the Strategy, while the Trader’s success fee will be equal to 15%

• A Trader and one Follower both enroll $1,000 bringing the total strategy equity to $2,000

• The Trader then makes a profitable trade, resulting in a net profit of $200

Based on the profit share stated in the Follower Tiers list - the Follower’s share of the profit is $170 (=85%), while the Trader’s success fee will be equal to $30 (=15%).

Follower Tiers conditions and levels are determined by the Trader and can be changed/updated accordingly.

In case Follower Tiers are changed by the Trader - all current Followers will retain their initial profit share percentages which were in effect when they began following the Strategy, until the Follower deposits/withdraw funds, unfollows the Strategy or the Strategy is liquidated.

Any updates made to the Follower Tiers conditions by the Trader will take effect during the nearest open Strategy Rollover.

Strategy Trading Periods and Copytrading payouts

Any profits generated as a result of profitable trading activity - i.e. - Rewards - are automatically distributed in the following situations:

1. Any time a Trader closes a trade which resulted in a profit for the Follower

2. At the end of a Trading Period (i.e weekly, wednesday, 14:00 UTC)

Profit distribution and your share of profits received as a follower of a specific strategy is carried out via Copytrading Payouts. Such payouts would be reflected in your Follower Analytics and are calculated as an accumulated amount of profit for a certain Trading Period, in accordance with your Follower Tier and trading activity and profitability of the strategy manager. Any generated success fees are already automatically subtracted from the Follower's profit share.

A detailed information on the amount of profit received for a certain trading period as well as a manager's share of the profit deducted is reflected in the copy trading transaction history on the 'Follower Analytics' tab in the trader's 'Portfolio':

Strategy Rollover

Strategy rollovers are determined by the Trader and indicate the time points at which all Follower's pending deposits/withdrawals to/from the Strategy will be processed.

10SSRollover.png

In the screenshot above, the Strategy's first rollover of the day is 00:00 UTC, with the next rollovers being every 4 hours, at 4:00, 8:00, 12:00 etc.

This means that a deposit/withdrawal placed by a Follower in this Strategy for example, at 3:25 UTC, will be processed at the nearest Rollover - i.e at 4:00 UTC.

Each Strategy will have at least 1 rollover ensuring that Followers can always deposit/withdraw their equity from a Strategy.