Overview
BKG Exchange uses a periodic profit-sharing mechanism for Copy Trading.
Profit sharing is calculated based on the realized profit and loss generated during each settlement period.
The settlement period and profit-sharing ratio are determined by the applicable Copy Trading configuration.
For example:
- Settlement Period: 1 day
- Settlement Time: 00:00 UTC
- Profit-Sharing Ratio: 10%
The specific settlement period and profit-sharing ratio may be adjusted according to the platform's current configuration.
1. Profit-Sharing Settlement Period
Profit sharing is calculated according to each settlement period.
For example, if the settlement period is 1 day and settlement takes place at 00:00 UTC, the system records the realized profit and loss generated by the Copy Trader during that settlement period.
The system calculates profit sharing based on the cumulative realized profit and loss within the applicable period.
2. When Is Profit Sharing Calculated?
Profit sharing is calculated when a copied position generates realized profit or loss.
This occurs when:
- The Trader closes a copied position; or
- The Copy Trader closes the copied position.
Unrealized profit or loss from an open position is not treated as realized profit or loss for profit-sharing calculation.
The system continuously calculates the realized profit and loss generated during the current settlement period.
3. How Is Pending Profit Sharing Calculated?
The pending profit-sharing amount is calculated based on the net result of the current settlement period.
Formula
Pending Profit Sharing = (Period Realized P&L − Period Fees) × Profit-Sharing Ratio
For example:
- Period Realized Profit: 1,000 USDT
- Period Fees: 100 USDT
- Profit-Sharing Ratio: 10%
Calculation:
(1,000 − 100) × 10% = 90 USDT
The pending profit-sharing amount would be 90 USDT.
4. Pending Profit-Sharing Amount
The calculated pending profit-sharing amount is frozen and is not available to be used as margin.
This amount is not included as available margin for opening or maintaining positions.
The frozen amount is also excluded from the amount available for liquidation calculations under the applicable Copy Trading rules.
5. Pending Profit Sharing Is Recalculated in Real Time
The pending profit-sharing amount is not necessarily fixed during the settlement period.
As new positions are closed and additional realized profit or loss is generated, the system continuously recalculates the net result of the current settlement period.
Therefore, the pending profit-sharing amount may:
- Increase when additional realized profit is generated.
- Decrease when additional realized loss is generated.
The amount remains subject to the final settlement result for the applicable period.
6. What Happens If a Position Is Liquidated?
If a copied position is liquidated, the system recalculates the applicable realized loss and the pending profit-sharing amount based on the liquidation result.
If the liquidation loss reduces the net result of the settlement period, the previously frozen pending profit-sharing amount may be reduced accordingly.
Any excess amount that is no longer required to be frozen will be released and returned to the Copy Trader's available funds.
Any remaining amount that continues to qualify as pending profit sharing remains frozen until the applicable profit-sharing settlement.
7. Settlement With the Trader
At the end of each settlement period, the system calculates the final profit-sharing amount based on the net realized result for that period.
The applicable profit-sharing amount is then settled with the Trader according to the platform's Copy Trading rules.
The settlement is based on the final eligible realized profit and loss after applicable fees and adjustments.
8. Example of the Calculation Process
Assume the following settings:
- Settlement Period: 1 day
- Settlement Time: 00:00 UTC
- Profit-Sharing Ratio: 10%
During the settlement period:
Stage 1 — Realized Profit
A copied position is closed with:
- Realized Profit: 1,000 USDT
- Fees: 100 USDT
Pending Profit Sharing:
(1,000 − 100) × 10% = 90 USDT
The 90 USDT is frozen.
Stage 2 — Additional Realized Loss
Later in the same settlement period, another copied position is closed with:
- Realized Loss: 300 USDT
The current net result becomes:
1,000 − 300 − 100 = 600 USDT
Pending Profit Sharing:
600 × 10% = 60 USDT
The pending profit-sharing amount is therefore recalculated from 90 USDT to 60 USDT.
The excess 30 USDT is released back to the Copy Trader.
Stage 3 — Liquidation
If another copied position is liquidated and the liquidation result further reduces the net realized result, the system recalculates the pending profit-sharing amount again.
If the recalculated amount is lower than the currently frozen amount, the excess frozen amount is released.
If an amount remains eligible for profit sharing, that amount remains frozen until the applicable settlement.
9. Important Notes
- Profit sharing is based on realized profit and loss, not unrealized P&L.
- Profit sharing is calculated according to the applicable settlement period.
- Closing a position can cause the pending profit-sharing amount to be recalculated.
- The pending profit-sharing amount may increase or decrease during the settlement period.
- Pending profit-sharing funds are frozen and are not used as available margin.
- If liquidation occurs, the system recalculates the pending profit-sharing amount based on the liquidation result.
- Any excess frozen amount that is no longer required will be released to the Copy Trader.
- The final profit-sharing amount is determined at the applicable settlement time according to the platform's rules.
- The settlement period, settlement time, and profit-sharing ratio may be adjusted according to the current Copy Trading configuration.
FAQ
Is profit sharing calculated on unrealized profit?
No. Profit sharing is calculated based on realized profit and loss generated during the applicable settlement period.
When does realized P&L affect profit sharing?
Realized P&L is generated when a copied position is closed, whether the position is closed by the Trader or by the Copy Trader.
Can the pending profit-sharing amount change?
Yes. It is recalculated as the realized profit and loss changes during the settlement period, so it may increase or decrease.
Can pending profit-sharing funds be used as margin?
No. The pending profit-sharing amount is frozen and is not available as margin.
What happens to pending profit sharing if liquidation occurs?
The system recalculates the pending profit-sharing amount based on the liquidation result. If the required frozen amount decreases, the excess is released back to the Copy Trader.
When is the final profit-sharing amount settled?
The final amount is calculated at the end of the applicable settlement period according to the configured settlement time and profit-sharing rules.
What is the profit-sharing formula?
Pending Profit Sharing = (Period Realized P&L − Period Fees) × Profit-Sharing Ratio