How Performance Fee Works in Copy Trading
Performance Fee is an automated system that transfers a portion of investment profits from an investor's account to their wallet when a signal provider withdraws funds from their profitable strategy.
When a signal provider takes profit from their account, Performance Fee automatically allocates a proportionate share to investors. This allows investors to realize gains continuously as the signal provider withdraws profits, rather than only when they stop copying the strategy.
Key Points About Performance Fee:
Transfers occur only for profitable investments
Any stop loss or take profit settings are updated after Performance Fee deductions
The Copy Ratio remains unchanged after a signal provider's withdrawal
Signal providers can withdraw any portion of their funds without restrictions
Performance Fee is calculated proportionally to the signal provider's withdrawal, but never exceeds the investment's net profit
Performance Fee Formula:
iniCopyPerformance Fee amount = Signal provider withdrawal × Copy Ratio (never exceeding maximum Performance Fee) Investment net profit = Investment equity + Previously paid Performance Fee - Initial investment amount
Practical Example:
Let's say you're copying a strategy with 15% of your funds:
A signal provider has $1500 equity in their strategy with a 25% profit share rate
You invested $225 in this strategy, giving you a Copy Ratio of 0.15 (15%)
The signal provider makes $800 profit, resulting in your calculated profit: $800 × 0.15 = $120
The 25% profit share is calculated: $120 × 25% = $30 as the signal provider's floating commission
Scenario 1: Signal Provider's First Withdrawal
The signal provider withdraws $300 profit:
Maximum Performance Fee available: $120 (investment profit) - $30 (floating commission) = $90
Signal provider's withdrawal of $300 × Copy Ratio of 0.15 = $45
Since $45 is less than the maximum Performance Fee ($90), you receive $45 in your wallet
Scenario 2: Signal Provider's Second Withdrawal
The signal provider makes another withdrawal of $400:
Maximum Performance Fee now available: $90 (previous max) - $45 (already paid) = $45
Signal provider's withdrawal of $400 × Copy Ratio of 0.15 = $60
Since $60 exceeds the maximum available Performance Fee ($45), you receive $45 in your wallet
Impact on Stop Loss and Take Profit Settings
Stop loss (SL) and take profit (TP) settings are updated after Performance Fee deductions:
iniCopySL/TP after Performance Fee = SL/TP before Performance Fee - Performance Fee amount
If this calculation results in zero or a negative value, the stop loss is canceled, and you'll receive a notification.
Note that Performance Fee credited to your wallet is not included in your investment equity calculation.