All Collections
Profit-Sharing
Profit-Sharing
Understanding Profit Sharing

Understanding Profit Sharing

This article is essential for every investor looking to understand the functionalities of Profit Sharing 2.0!
Anh Nguyen avatar
Written by Anh Nguyen. Updated this week

Let's dive into the need-to-know information about our newest investment solution, Profit Sharing 2.0!

In this article:

What Is Profit Sharing?

Profit Sharing is an automated investment solution (similar to PAMM accounts) that allows you to safely transfer your funds to be professionally managed by expert traders.

Profit Sharing Key Features:

  • Shared success - Users will only pay a success fee if the trader generates profits. This creates a strong incentive for Profit Sharing managers to achieve positive results with high-quality strategies.

  • No minimum investment

  • Expert traders manage your funds and must invest their own funds within the service.

  • Options to reinvest or withdraw your profits

Success Fees - High Watermark

Each Profit Sharing service has indicated its Success Fee rate. As an investor, you only have to pay this percentage when the Fund Manager makes a real profit on your investment.

So, how do we calculate your REAL profits?

Zignaly has now introduced the concept of High Watermark (HWM) and 3 Days Basis (3DB), which is an accounting process that ensures your balance increases without a pump in market price.

Assuming your first HWM is your initial investment, you will only have to pay Success Fees if your minimum balance in the last 3 days exceeds the HWM. If it is, you will pay the success fees, and the new HWM will be that bare minimum.

By this point, the system will charge you Success Fees using this formula.

Example: Success Fees = 25%

Value of SF you need to pay on day 3 = ( new HWM - old HWM) * 25%

Reinvest / Withdraw Your Profits

When connecting to a service, you can decide what percentage of your profits you wish to reinvest into the service or withdraw into your exchange account. This can be changed at any time.

Increase, Decrease or Withdraw your investment

To increase, decrease (partially withdraw) or withdraw all your investment, click on the 'Edit' button next to the service you wish to modify.

If you want to withdraw a portion or all of your investment from a service, you can request a withdrawal: You can withdraw from 0 to 100% of your funds. Once requested it may take some time until the service manager releases your funds.

Please look over the balance and deduction amounts before you complete the withdrawal.

Risk

❗Please be aware that any investment has risks.

Risk is multiplied by several factors when you are dealing with derivatives.
Please do your own research & choose your service carefully.

Keep in mind that previous results do not guarantee future performance; you may wish to start with a small amount until you are comfortable adding more to your investment.

📌 Next step > Invest In A Profit Sharing Service

Did this answer your question?