As a lead trader on Binance Copy Trading, you have the opportunity to earn from the success of your strategy in two primary ways: a share of the profits generated by your followers and a rebate from the trading fees they incur. This system is designed to reward skilled traders for providing value to the community.
Lead traders are eligible to receive:
- 10% Profit Share: A portion of the net realized profits made by users who copy your trades.
- 10% Commission Rebate: A rebate from the trading fees paid by your copy trading followers.
This guide explains how these earnings are calculated, distributed, and what you need to know to maximize your benefits.
Understanding the Earning Cycle
All calculations for profit sharing and commission rebates operate on a fixed weekly cycle.
- Calculation Period: The cycle runs every week from Monday at 8:00 AM Hong Kong Time (HKT) to Sunday at 11:59:59 PM HKT.
- Settlement Time: Distributions are automatically processed and credited to your Binance Spot Wallet every Monday.
Key Conditions for Profit Sharing Settlement
A crucial rule governs the settlement of your 10% profit share:
- Weekly profit sharing is only settled if the copy trading portfolio holds no open positions at the end of the weekly cycle. This means all trades must be closed for the profit share to be calculated and paid out for that week.
- The 10% commission rebate is not affected by open positions and is calculated based on fees incurred during the week, regardless of the portfolio's status.
Additional Settlement Triggers
Besides the weekly cycle, your profit share will also be automatically calculated and distributed immediately in the following scenarios:
- When a follower chooses to stop copying your portfolio.
- When you, as the lead trader, decide to end and close the investment portfolio.
- When a follower withdraws their profits from the copy trading activity.
The Profit Share Calculation Formula
The system uses a specific formula to determine the amount to be distributed for each follower's portfolio. The amount awaiting distribution is calculated as:
Pending Distribution Amount = Max[ (Total Realized Portfolio Profit * Profit Share Percentage) - Already Distributed Amount, 0 ]
This formula ensures you are paid the correct cumulative share of profits over the life of a follower's copy, preventing overpayment.
A Practical Example of Profit Calculation
Let's walk through a detailed example to see how the profit-sharing mechanism works in practice over time.
Assume a follower copies your portfolio with an initial investment of 1,000 USDT, and your profit share rate is 10%. The table below tracks the portfolio's performance over four weeks.
| Time Period | Weekly PnL Change | Cumulative PnL | Total Profit Share Amount | Already Distributed Amount | Pending Amount |
|---|---|---|---|---|---|
| Week 1 | +200 USDT | +200 USDT | 20 USDT | 0 USDT | 20 USDT |
| Week 2 | -150 USDT | +50 USDT | 5 USDT | 20 USDT | 0 USDT |
| Week 3 | +100 USDT | +150 USDT | 15 USDT | 20 USDT | 0 USDT |
| Week 4 | +150 USDT | +300 USDT | 30 USDT | 20 USDT | 10 USDT |
Understanding the Table:
- Weekly PnL Change: This is the net realized profit or loss for that specific week. Note that all realized profits have already been deducted for any trading fees incurred.
- Cumulative PnL: This is the total net realized profit from the beginning of the copy trade up to the end of that week.
- Total Profit Share Amount: This is 10% of the Cumulative PnL. It represents the total amount you should have earned from this follower so far.
- Already Distributed Amount: The sum of all profit share payments already sent to you from this follower.
- Pending Amount: The result of the formula. It shows what is due to be paid in the next distribution.
Breakdown of the Example:
- Week 1: The follower nets a +200 USDT profit. Your 10% share is 20 USDT. Since nothing has been paid yet, the full 20 USDT is pending distribution.
- Week 2: The portfolio has a bad week, losing 150 USDT. The cumulative profit drops to +50 USDT. Your total deserved share is now only 5 USDT. However, you have already been paid 20 USDT. The formula Max[(50 * 0.1) - 20, 0] = Max[-15, 0] = 0 USDT. Therefore, no payment is made this week. This corrects for the previous overpayment based on later losses.
- Week 3: A profit of +100 USDT brings the cumulative total to +150 USDT. Your total deserved share is 15 USDT. You have already been paid 20 USDT. The calculation Max[(150 * 0.1) - 20, 0] = Max[-5, 0] = 0 USDT. Still no payment.
- Week 4: A strong profit of +150 USDT raises the cumulative profit to +300 USDT. Your total deserved share is now 30 USDT. After subtracting the 20 USDT you've already received, 10 USDT is now pending distribution.
This example highlights the protective and fair nature of the calculation, ensuring lead traders are paid accurately based on the net profitability of their followers. 👉 Explore more strategies for building a successful copy trading portfolio.
Frequently Asked Questions
Q1: If my follower has open positions at the week's end, do I get any earnings?
A: You will still receive the 10% commission rebate from their paid trading fees for that week. However, the 10% profit share will not be calculated or distributed until all positions in that follower's portfolio are closed.
Q2: How can I track my earnings from copy trading?
A: All distributions for both profit share and commission rebates are automatically transferred to your Binance Spot Wallet. You can review your wallet history every Monday to see the incoming transactions labeled accordingly.
Q3: Is the 10% profit share taken from the follower's initial investment or only their gains?
A: It is taken only from their net realized profits. The follower's initial capital is never touched for your profit share. The calculation is always based on gains after all fees.
Q4: What happens if a follower's cumulative profit becomes negative?
A: The profit share formula only calculates a positive amount. If cumulative profits are negative or zero, the "Total Profit Share Amount" is zero, and the "Pending Amount" will also be zero. You will not receive a profit share until the follower's portfolio returns to a net positive realized profit.
Q5: Can I change my profit sharing percentage?
A: No, the profit share and commission rebate rates for lead traders on Binance Copy Trading are set at a fixed 10% each and are not user-configurable.
Q6: Are there any fees for me to receive these earnings?
A: No, there are no additional charges or fees deducted from the profit share or commission rebate amounts distributed to your spot wallet.