Overview
Copy Trading allows you to follow the trading activity of selected Traders, but it does not guarantee profits.
Because Copy Trading involves futures trading, your account may be exposed to significant market risks, including losses resulting from market volatility, leverage, liquidity, and trade execution.
Please understand the following risks before enabling Copy Trading.
1. Market Risk
Digital asset prices can change rapidly.
A sudden price movement may cause a copied position to generate a significant profit or loss within a short period of time.
Past market conditions may not reflect future conditions.
2. Leverage Risk
Futures trading may involve leverage.
Leverage increases the value of a position relative to the margin allocated to it. While leverage can increase potential returns, it can also increase potential losses.
Under adverse market conditions, a leveraged position may be liquidated.
3. Trader Strategy Risk
Copy Trading replicates eligible trading activity from the selected Trader.
A Trader's strategy may not perform as expected under different market conditions.
Past performance, trading history, or other displayed statistics do not guarantee future results.
4. Execution Difference
Your copied trades may not have exactly the same execution price or timing as the Trader's trades.
Differences may result from:
- Market volatility
- Market liquidity
- Order execution timing
- Position size
- Account settings
- Trading conditions
As a result, your profit or loss may differ from the Trader's reported result.
5. Liquidity Risk
Some digital assets or trading pairs may have limited market liquidity.
Low liquidity can result in:
- Wider price differences
- Greater execution price variation
- Partial execution
- Increased difficulty closing positions during volatile markets
6. Liquidation Risk
A leveraged copied position may be forcibly liquidated when the applicable liquidation conditions are reached.
Liquidation may result in a significant or total loss of the margin allocated to the position.
Users should understand the applicable futures risk-management and liquidation rules before using Copy Trading.
7. Profit-Sharing Risk
Copy Trading may involve profit sharing with the Trader.
Profit sharing is calculated based on realized P&L and applicable fees during the settlement period.
The pending profit-sharing amount is frozen and cannot be used as available margin.
Because the amount is recalculated as realized P&L changes, it may increase or decrease during the settlement period.
8. Risk of Following a Single Trader
Following one Trader means your Copy Trading activity may be heavily influenced by that Trader's strategy and trading decisions.
If the Trader experiences losses, your copied positions may also generate losses.
Consider your own risk tolerance and avoid allocating funds beyond what you are prepared to lose.
9. Technology and Execution Risk
Copy Trading relies on the platform's trading and order-execution systems.
Temporary system issues, network interruptions, market disruptions, or other technical conditions may affect the timing or execution of copied trades.
10. Your Own Account Settings
Your results may be affected by your Copy Trading settings, allocated funds, leverage, and other account parameters.
Make sure your settings are appropriate for your own circumstances before starting Copy Trading.
Risk Management Considerations
Before using Copy Trading, consider:
- The amount of funds you are willing to allocate
- Your tolerance for losses
- The Trader's historical performance and risk information
- The Trader's trading style
- The use of leverage
- Market liquidity
- Your Copy Trading settings
- The applicable profit-sharing rules
Regularly monitor your copied positions and account balance.
Important Notes
- Copy Trading does not guarantee profits.
- You may lose some or all of the funds allocated to Copy Trading.
- Past performance does not guarantee future results.
- Your trading results may differ from the Trader's results.
- Futures trading and leverage can increase both potential gains and losses.
- Market conditions can change rapidly.
- Do not use funds that you cannot afford to lose.
- Make sure you understand the applicable Copy Trading and futures trading rules before participating.
FAQ
Does Copy Trading guarantee profits?
No. Copy Trading involves market risk and does not guarantee profits.
Can I lose all of my allocated Copy Trading funds?
Yes. Depending on market conditions and applicable liquidation rules, significant losses may occur.
Why is my P&L different from the Trader's?
Differences in execution price, timing, position size, leverage, fees, liquidity, and Copy Trading settings can result in different outcomes.
Does higher historical performance mean lower risk?
No. Historical performance does not determine future performance or guarantee a particular level of risk.
Can a copied position be liquidated?
Yes. Copied futures positions are subject to the applicable liquidation and risk-management rules.
Can pending profit-sharing funds be used as margin?
No. Pending profit-sharing funds are frozen and are not available as margin.
What should I do if market conditions change?
Monitor your copied positions and account exposure regularly and adjust or stop Copy Trading according to the available platform controls and applicable rules.