Overview
Copy Trading may involve two different types of costs:
- Trading Fees generated when copied trades are executed.
- Profit Sharing paid to the Trader when the applicable profit-sharing conditions are met.
These two charges are calculated separately.
1. Copy Trading Trading Fees
Copied trades are subject to the applicable futures trading fees of BKG Exchange.
The trading fee is charged when a copied position is executed or closed, according to the applicable fee rules.
Trading fees reduce the net realized P&L used for profit-sharing calculations.
2. Profit Sharing
Profit sharing is the amount shared with the Trader based on the applicable profit-sharing ratio and settlement rules.
The profit-sharing amount is calculated based on the net realized result during the applicable settlement period.
Formula
Pending Profit Sharing = (Period Realized P&L − Period Fees) × Profit-Sharing Ratio
For example:
- Period Realized P&L: 1,000 USDT
- Period Fees: 100 USDT
- Profit-Sharing Ratio: 10%
Calculation:
(1,000 − 100) × 10% = 90 USDT
The calculated amount is treated as pending profit sharing and is frozen until the applicable settlement.
3. Trading Fees and Profit Sharing Are Different
Trading fees are fees charged for executing trades.
Profit sharing is the applicable portion of eligible net realized profit shared with the Trader.
For example, if a copied trade generates a realized profit of 1,000 USDT and applicable trading fees are 100 USDT:
Net Result = 1,000 − 100 = 900 USDT
If the profit-sharing ratio is 10%:
Profit Sharing = 900 × 10% = 90 USDT
The trading fee and profit-sharing amount are therefore separate items.
4. When Is Profit Sharing Generated?
Profit sharing is calculated when copied positions generate realized P&L.
A position may generate realized P&L when:
- The Trader closes the copied position; or
- The Copy Trader closes the copied position.
Unrealized P&L from an open position is not included as realized P&L for profit-sharing calculation.
5. Pending Profit-Sharing Amount
The pending profit-sharing amount is frozen and cannot be used as available margin.
The amount is recalculated as the settlement-period realized P&L changes.
Therefore, the pending amount may increase or decrease before the settlement period ends.
If realized losses reduce the net result, the pending profit-sharing amount may decrease and excess frozen funds may be released.
6. Profit-Sharing Settlement
At the end of each applicable settlement period, the system calculates the final eligible profit-sharing amount.
The settlement period, settlement time, and profit-sharing ratio are determined by the applicable Copy Trading configuration.
For example, a configuration may use:
- Settlement Period: 1 day
- Settlement Time: 00:00 UTC
- Profit-Sharing Ratio: 10%
The actual settings may vary according to the current platform configuration.
Important Notes
- Trading fees and profit sharing are separate.
- Trading fees are charged on executed trades according to the applicable futures fee rules.
- Trading fees are included when calculating the net result for profit sharing.
- Profit sharing is based on realized P&L, not unrealized P&L.
- Pending profit-sharing funds are frozen and are not available as margin.
- Pending profit sharing may increase or decrease during the settlement period.
- Liquidation may cause the pending profit-sharing amount to be recalculated.
- The applicable fee rates, settlement period, and profit-sharing ratio may be updated according to the platform's current rules.
FAQ
Are trading fees and profit sharing the same thing?
No. Trading fees are charged for executed trades, while profit sharing is the applicable portion of eligible net realized profit shared with the Trader.
Are trading fees included in profit-sharing calculations?
Yes. The applicable period fees are deducted from the period realized P&L when calculating pending profit sharing.
Is profit sharing charged on unrealized profit?
No. Profit sharing is calculated based on realized P&L.
Can the profit-sharing amount change before settlement?
Yes. The pending amount is recalculated as realized P&L changes during the settlement period.
Can pending profit sharing be used as margin?
No. Pending profit-sharing funds are frozen and are not available as margin.
When is profit sharing settled?
Profit sharing is settled according to the applicable settlement period and settlement time configured for Copy Trading.