How does the profit-sharing system work in Bybit Copy Trading?

Profit Distribution Mechanism

1. When a follower subscribes to a master trader on Bybit Copy Trading, their position size is automatically scaled based on the ratio of their available margin to the master’s margin at the time of opening.

2. Profits and losses are calculated in real time and reflected in the follower’s wallet as soon as the master closes a position.

3. The system does not apply any fixed percentage fee on realized PnL before crediting followers; instead, fees are deducted separately from the follower’s balance after profit calculation.

4. All calculations occur on-chain via smart contract logic embedded in Bybit’s internal matching engine, ensuring deterministic execution without manual intervention.

Fee Structure for Followers

1. Followers pay a performance fee only when the master generates net positive returns over a rolling 30-day window.

2. The fee rate is set by the master trader and ranges between 0% and 20%, visible upfront before subscription.

3. Fees are charged exclusively on profits — no fee applies if the copied trade results in a loss or breakeven outcome.

4. Fee deductions happen instantly upon position closure and appear as separate ledger entries labeled “Copy Trading Performance Fee”.

Master Trader Revenue Model

1. Masters earn income solely through performance fees collected from followers’ profitable trades.

2. There is no base salary, platform subsidy, or guaranteed payout regardless of trading activity or follower count.

3. A master’s total earnings are aggregated daily and settled in USDT directly into their Bybit main account.

4. Earnings are subject to Bybit’s anti-money laundering verification thresholds; withdrawals exceeding $50,000 per day require additional KYC validation.

Risk Allocation Protocol

1. Followers bear full responsibility for margin calls triggered by copied positions, even if the master’s original position remains solvent.

2. Leverage settings are inherited from the master but adjusted proportionally to avoid forced liquidation due to minor slippage discrepancies.

3. Negative balance protection applies individually to each follower’s account, independent of the master’s equity status.

4. If a master disables copy trading mid-session, all open positions for active followers remain open until manually closed or auto-liquidated.

Settlement Timing and Transparency

1. Realized PnL updates occur within 200 milliseconds of the master’s trade execution confirmation on Bybit’s matching engine.

2. Daily settlement reports are generated at 00:00 UTC and include breakdowns of gross PnL, fee deductions, and net credited amounts.

3. Historical data is stored for 90 days and accessible via the Copy Trading dashboard under “My Subscriptions” > “Performance History”.

4. All transaction hashes related to fee transfers are logged and viewable in the account’s audit trail with blockchain-style immutability.

Frequently Asked Questions

Q1. Are performance fees applied to unrealized gains?No. Fees are computed only after the master closes a position and the PnL becomes realized. Open positions do not trigger any fee accrual.

Q2. Can a follower adjust the copy ratio after subscribing?Yes. Followers may modify their copy ratio at any time while positions are open, though changes only affect new orders placed afterward.

Q3. What happens if a master deletes their account?All active subscriptions terminate immediately. Open copied positions remain in the follower’s account but stop receiving new signals from that master.

Q4. Is there a minimum balance required to start copying?Followers must maintain at least 50 USDT in available margin to initiate a subscription. Accounts falling below this threshold will pause automatic copying until replenished.