[Copier] FAQ

Q1. Basic Logic of Copy Trading

A:1.1 Copying Logic of Copy Trading

1.1.1Copy trading is based on the trader’s adjusted positions, the number of copying transactions (rounded down) = the proportion of copying * the number of adjusted positions. If the number is less than the minimum copying number of futures, it is not copied.

1.1.2Then calculate the copier’s available trades according to the user’s available funds and future leverage set. If the number of copy trades ≤ the number of available trades of the copier, the copy will be successful, otherwise the copy will fail.

1.1.3Without considering the copying leverage, leverage system, and single constraints, the copier will copy the position change of the lead trader until the copying fund is not allowed. When the lead trader reduces the position of the corresponding copying future, the copier will gain corresponding available funds.

1.1.4The copier should pay the copying margin. Every time you copy a trader, the funds of the spot account will be transferred to the sub-account in the form of a virtual sub-account, and the sub-account will only copy the trader. After copy trading, it will be liquidated. After deducting the share and trading fees, the remaining funds will be transferred to the spot account.

A: 1.2 Case Study of Copying Logic

Without calculating trading fees and funding rates:

If the lead trader has a total of 1,000 U of funds, of which 100 U is used to buy the future of token A, with a leverage of 100 times, then the value of the opened position is 100*100=10,000U；

If the copier’s total number of copying funds is 100U, with the copying proportion set to 0.1, and the leverage set to 20 times. Theoretically, the copy position of the copier copying the above orders is 10,000 * 0.1 = 1,000U. The copier needs to invest a margin of 1,000/20=50U to copy, then the remaining available funds of the copier are 100-50=50U;

Subsequently, the lead trader used 200U to buy the future of token B, with a leverage of 100 times. Then the value of the position is 200 * 100 = 20,000U; Then, the copier has a remaining available fund of 50U, a leverage of 20 times, and a maximum position value that can be built of 1,000U. If the copier wants to continue to copy the lead trader to buy the future of token B, the copier can only build a position of 1,000U. So far, the copy funds are all used up.

At this time, the prices of both A and B tokens have risen by 10%, and the trader closes the position: Earnings of the trader: (11000-10000) + (22000-20000) = 3000U; Earnings of the copier: (1100-1000) + (1100-1000) = 200U.

A:1.3Possible Problems in Copying Logic

The copier may find that his/her earnings and traders’ earnings do not coincide. When the copier has a different capital and uses a different leverage or sets a fixed copying proportion, etc., there will be an inconsistency of return between the copier and the trader. The copier needs to carefully set their own copying parameters and select a trader with similar funds to him/her to copy.

Q2. Why is There an Inconsistency Between the ROI of Traders & Copiers?

A:1.The different deposit amounts between the trader and the copier will lead to a different ROI. If the copier has insufficient funds, he cannot copy the trader in the follow-up trades.

The current copy logic is: the copier copies the position change of the trader for as long as his/her copy funds’ balance allows. If the previous operation/trade of the trader occupies all of the copier’s funds, the copier cannot follow the subsequent trades of the trader. Please refer to Q1 for more details.

A:2.If a trader has an open future position before copiers copy him, and adds a position after copiers copy him, there will be different costs for the copiers and the trader in the same future, and different returns after the position is closed.

A:3.Copiers set the copying leverage in the copying parameters, which results in different returns between the trader and a copier after the position is closed.

A:4.The leverage of copiers and traders is inconsistent. Currently, for risk control purposes, the maximum leverage of future copiers is 20 times, while the maximum leverage of some future traders is 100x, and the inconsistency of leverage may lead to inconsistent returns between the two.

A:5.Copiers used a customized copying method, which refers to the percentage or times of copying the lead trader’s position. For example, if the copier sets 10 times, the trader adds 10 futures, the copier will increase the position 10 * 10 = 100 futures, and the copying proportion can be set between 1 and 100. It is recommended to set the copying proportion according to the fund amount of copiers and the proportion of funds of traders. For example, when the interest of the traders is 1,000 usdt, and the copiers’ fund is 1,000 usdt, it is recommended to set the copy proportion to 1 X(1,000/1,000). If the copier’s fund is 5,000 usdt, the copying proportion can be set to 5X (5,000/1,000=5).

Q3. How to Avoid Inconsistency in ROIs？

A:1.The platform recommends that copiers copy traders with similar investment funds.

A:2.It is recommended to set the copying method according to the copiers’ fund amount and the traders’ fund proportion.

Q4. How Do Copiers Copy at Present?

A:At present, copiers are only allowed to copy limit orders. If the order is not completed, the copy will fail.

Q5. How Long is the Valid Period of the Order if the Copiers’ Order is Not Closed?

A: At present, only limit orders are supported. If the order is not completed, the copy will fail. And the order has no valid period.

Q6. How to Determine the Copying Ratio?

A: Users can set it themselves or calculate the copying ratio based on the available balance ratio.

Q7. Can Copiers Stop Copying Manually?

A: At present, copiers can only stop copying manually. But once they choose to stop copying, they will end the entire copying behavior, not just stop copying a certain order.

Q8. Can the Copier Copy the Lead Trader’s Stop Loss Order?

A: Stop-loss orders can’t be copied, and copiers must set the ratio of take profit and stop loss by themselves.

Q9. How to Calculate the Copier’s Return Displayed on the Copier’s User Page? Why are the Total Copying Return Different from the Sum of Single Copying Return?

A: Copying Return of Copiers = Historical Returns - The Fee Deducted from the Current Position - Profit Sharing.

A:The historical return amount is equal to the sum of each copying ROI, as shown in the image above.

Note: The unrealized PNL currently displayed on the copying page is not included in the copying returns.

Q10. Why is the custom leverage set by copiers not taking effect?

A1. Copy-trading leverage is subject to risk limit rules

If a copier sets a custom leverage (e.g., 20x) but it doesn't take effect, it's because the trader they are following has triggered the exchange's risk limit mechanism. According to the copy-trading rules, the actual leverage used by the copier will never exceed the maximum leverage allowed for that trade by the lead trader.

A2. Explanation of the risk limit mechanism

The exchange automatically applies risk limit tiers based on the lead trader's position value. The larger the position, the higher the risk tier, which results in a lower maximum allowable leverage (for example, reducing from 20x to 3x). If the lead trader's maximum allowable leverage is 3x due to a large position, the system will automatically adjust the copier's leverage to 3x, even if the copier has set a higher custom leverage.