Toobit Copy Trading: Profit-sharing rules for Lead Traders

2025-10-20 07:38

1. Profit-sharing ratio

The profit-sharing ratio for each Lead Trader is determined by their tier.

Trader tiers	Co-Pilot	Pilot	Captain	Astronaut
Max profit-sharing ratio	10%	12%	15%	20%

Refer to the Toobit Copy Trading: Trader tier system upgrade for details.
The maximum profit-sharing ratio in the tier table represents the highest percentage a trader can set. Lead Traders can adjust this ratio anytime in [Settings] on their trading page. For more details, see How do Pro Traders begin Copy Trading?
When a Lead Trader helps their followers generate profits, a portion of the followers' realized gains will be distributed to the Lead Trader's account (distributed to their spot account) as profit-sharing rewards.

2. Settlement periods and distribution time

Toobit offers two types of profit-sharing settlement periods. Lead Traders can select the one that best fits their trading strategy:

Daily settlement
- The system automatically settles the previous day's profit-share at 08:00 (UTC) on T+1.
Weekly settlement
- The system automatically settles profits for the entire previous week (Monday 00:00 to Sunday 23:59:59 UTC) at 08:00 (UTC) every Monday.

All profit-sharing amounts are converted into USDT before being credited to the Lead Trader's Spot Account.

3. Profit-sharing calculation rules

3.1 Only closed orders are counted

Only closed copy trading orders within the selected settlement period are included in the calculation. Open positions are not counted toward that period's settlement.

3.2 Preliminary deduction mechanism

When a follower closes a position with profit, the system automatically withholds the preset profit-sharing ratio (e.g., 10%) from the follower's realized gain as estimated profit share. This withheld amount will not appear in the follower's account until the settlement is complete.

3.3 Settlement logic

At the end of each settlement period, the system calculates the total realized profit and loss for all closed copy trades within that period:

If the follower's overall net profit for the period is positive, the system issues the corresponding share (e.g., 10%) to the Lead Trader.
If the total withheld profit exceeds the Lead Trader's actual payable share, the excess portion will be refunded to the follower's account.

4. Special cases and notes

Differences in user actions — such as leverage adjustments, manual position closing, or margin variations — may cause discrepancies between the Lead Trader's and followers' actual P&L.

Profit share will be calculated based on the following rules:

Scenario	Description
① Follower uses higher leverage and earns more than the Lead Trader	Profit share applies to the follower's gains
② Follower uses higher leverage or smaller margin and suffers larger loss or liquidation	No profit share
③ Follower uses lower leverage but still profits	Profit share applies to the follower's gains
④ Follower manually closes position with profit, Lead Trader later loses	Profit share applies to the follower's gains
⑤ Follower manually closes position with loss, Lead Trader later profits	No profit share
⑥ Lead Trader is liquidated	The system automatically closes all related follower positions and stops profit share for the period

Note: Profit-share is determined by the settlement period in which the follower's order is closed. The period in which an order is closed is the period in which its profit share will be settled.

5. Examples of settlement

Settled profit share (USDT): The amount of profit share calculated by the system based on closed orders that generated a profit.
When a follower's closed order is profitable, the "unsettled profit share" increases; if the order is a loss, the "unsettled profit share" decreases. The final profit share will be distributed at the end of the settlement period.

Example 1: Single follower with profitable order

Lead Trader M opens a BTC/USDT perpetual position. Follower A closes the position with a profit of 100 USDT.

The system withholds 10 USDT (100 × 10%) as the estimated profit share.

At the end of the settlement period, since A has no remaining open positions, the 10 USDT will be credited to Lead Trader M's spot account.

Example 2: Mixed contracts, combined settlement

Lead Trader M leads trades where follower B participates in both BTC/USDT and ETH/USDT contracts:

BTC/USDT: closed, +40 USDT
ETH/USDT: closed, −20 USDT

Net profit: 40 − 20 = 20 USDT

Settlement profit share: 20 × 10% = 2 USDT

And the 2 USDT will be distributed to Lead Trader M's Spot Account.

If the system had previously withheld 4 USDT, the 2 USDT left will be automatically refunded to the follower's account.

Example 3: Partial settlement for open positions

Follower C copies Trader M's BTC/USDT and ETH/USDT trades:

BTC/USDT: closed, +50 USDT
ETH/USDT: still open

The system will withhold 5 USDT (50 × 10%) as the estimated profit share, but will not settle it until all positions are closed.

Once the follower's ETH/USDT position is closed, the system calculates the follower's total realized P&L and distributes the final profit share in the next settlement period (daily or weekly).

Example 4: Follower manually closes position earlier than the Lead Trader

Lead Trader M keeps the position open, while Follower D manually closes early and realizes a 30 USDT profit.

The system immediately withholds 3 USDT (30 × 10%) from this order as the estimated profit share, which will be settled in the next period.

If the Lead Trader later incurs a loss in the same position, it does not affect Follower D's profit share calculation — the system will still distribute 3 USDT to the Lead Trader.

Example 5: Lead Trader is liquidated

If Lead Trader M is liquidated due to extreme market conditions, the system will automatically close all associated follower positions and halt profit share settlement for the current period.

Any unsettled profit share for that period will be fully refunded to the followers.

From these examples, it's clear that:

Profit share is determined by the settlement period in which the follower's order is closed.
The final settlement will be distributed to the Lead Trader's Spot Account (converted to USDT) at the end of the period.

6. Special cases for Lead Trader profit share

Under normal circumstances, when the Lead Trader closes a position and followers have generated positive gains meeting the profit share conditions, the system will withhold the profit share from the followers' accounts in advance and settle it at 08:00 (UTC) the next day or on the designated settlement date.

Please note that the estimated profit share may differ from the actual settled amount. Factors such as exchange rate fluctuations, settlement timing, and rounding precision may cause minor differences. The final profit share credited is based on the system's settlement result.

In rare cases, to protect the followers' funds, if withholding the profit share could increase the follower's position risk or trigger liquidation, the system will not withhold that portion, and the Lead Trader will not receive the profit share for that order.

These situations are extreme and occur very rarely. Aside from these exceptions, Toobit's profit share process will proceed normally and will not affect the Lead Trader's overall earnings.

Happy Trading,

Toobit Team