Rewards. Follower Tiers and Profit Share Distribution

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 Followers can follow Traders’ strategies and profit without having to personally trade on from both rising markets

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

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 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:

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

Let's look at a few examples:

Example #1 (based on the screenshot above):

A Strategy offers the following Reward Tiers:

From $1 to $100 = 60% 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%

• A Trader and one Follower both enroll $50 into the Strategy.
• The Trader then makes a profitable trade, resulting in a net profit of $10.

Based on the profit share stated in the Follower Tiers list - the Follower’s share of the profit is $5 (50%), while the Trader’s success fee will be equal to $5 (50%).

Example #2 (based on the screenshot above):

Let’s assume that a Follower has enrolled 11 ETH into the Strategy. The Trader then makes a profitable trade, resulting in a net profit of $1,000.

• A Trader and one Follower both enroll $1,000 into the Strategy.
• The Trader then makes a profitable trade, resulting in a net profit of $100

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

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)

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

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.