The Copy Dividends feature can automate the proportional withdrawal from an investment account to the wallet account when the associated strategy account is profitable.
When a strategy provider withdraws funds as profit, Copy Dividends provide investors with a part of investment profit. Copy Dividends are automatically transferred from the investment account to the investor’s wallet. This allows investors to continually earn as the strategy provider withdraws profit, and not only when the investor stops copying a strategy.
Keep in mind:
- Copy Dividends are transferred to the investor's wallet for profitable investments only.
- Any stop loss or take profit settings changes are updated only after deducting Copy Dividends (example provided later).
- An investor’s set alerts will not notify Copy Dividends.
- The copying coefficient does not change after any strategy provider’s withdrawal, whether Copy Dividends occurred or not.
The Copy Dividends amount is calculated as a proportion of strategy provider's withdrawal, but can't be more than the maximum amount of Copy Dividends related to the Investment Net Profit. The Investment Net Profit is worked out as the Investment equity deducted by the investment amount and the floating commission to be paid for the current trading period.
Note: There is no limit for a strategy provider to withdraw. A strategy provider can withdraw any part of their funds.
The formula for calculating the Copy Dividends:
Amount of Copy Dividends = strategy provider withdrawal X copy coefficient (never more than the maximum amount of Copy Dividends)
Important:
- Maximum amount of Copy Dividends = Investment Net Profit - already paid Copy Dividends
- Investment Net Profit = Investment Profit - Paid Commission - Floating Commission
- Investment Profit = trading result of all investment orders
Here’s how Copy Dividends works:
Several scenarios for Copy Dividends are shown below.
Example:
Let’s assume that the investor is committing 10% to copy a strategy.
- A strategy provider has 1000 USD equity within a strategy and a 30% commission rate set.
- An investor invested 100 USD in this strategy, so their copying coefficient is 0.1 (10%).
- The strategy provider makes a profit of 500 USD. This leads to the investment calculating its profit: USD 500 × 0.1 = 50 USD.
- The commission share of 30% is then calculated: 50 USD × 30% = 15 USD as the strategy provider’s floating commission.
There are 2 possible Copy Dividends scenarios depending on how much the strategy provider’s chooses to withdraw from the strategy:
Scenario 1
The strategy provider decides to withdraw 200 USD profit from their strategy.
- Maximum amount of Copy Dividends for this moment is 50 USD (investment profit) - 15 USD (floating commission) = 35 USD
- The strategy provider’s withdrawal 200 USD will be multiplied by the copying coefficient of 0.1 = 20 USD.
- This is less than the maximum amount of Copy Dividends 35 USD so the Copy Dividends will award the investor with a payout of 20 USD.
Scenario 2
The strategy provider decides to make a second withdrawal of 250 USD from the strategy.
- Maximum amount of Copy Dividends for this moment is 50 USD (investment profit) - 15 USD (floating commission) - 20 USD (already paid Copy Dividends) = USD 15.
- The strategy provider’s withdrawal of 250 USD is multiplied by the copying coefficient of 0.1 is 25 USD.
- This is more than the maximum amount of Copy Dividends 15 USD. Copy Dividends will award the investor with a payout of 15 USD. It is not reflected as an exact 10% proportional share.
How do Copy Dividends impact Stop Loss and Take Profit?
Stop Loss (SL) and Take Profit (TP) settings will only be updated after deducting the Copy Dividend.
Note: SL/TP after Copy Dividends withdrawal = SL/TP before Copy Dividends withdrawal - Copy Dividends amount
If the result of this deduction is less or equal to zero, then SL is canceled and the investor receives a push-notification.
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