Profit-Sharing Information

*for Service Providers

Profit-Sharing is our best method of automated trading that allows connected users to receive 100% identical results.
The Trader and subscribers become one. This ensures the perfect execution of the trading strategy from entry to exit.
As a service provider, you can now choose to offer your service using the profit-sharing method.

    • Available for Spot & Futures trading
    • You must create & connect to your own service with a Zignaly Spot or Zignaly Futures
      Exchange Account
Key Features
    • Shared success -Based on performance through success fees.
    • High watermark as fair win-win model
    • 100% identical results for investor and trader

In this Article:


How does Profit Sharing work?

For this model to be possible it is necessary to use a Zignaly Exchange account, which is a sub-account within the Binance Broker Program, in which Zignaly participates.

This allows us to create joint pools where both trader's and user's funds are allocated. 

Whenever a user connects to your service, the allocated balance is pooled into one account.
When you open a position, you will have to take into consideration the whole capital that you are managing. Let's say you allocate 100,  userA allocates 200, and userB allocates 50, you would be managing 350usdt in total. If you open a position of 10%, that would be a position of 35usdt.

 

Success Fee:

The profit-sharing model works with a success fee instead of a standard monthly subscription fee.

You decide on the success fee for your Profit-Sharing service. Profits will be divided between the Investors, the provider (you) & a 5% rate to Zignaly. Let's say that you decide to charge a 30% success fee. The user will see a 30% success fee. 70% will go to the user, 25% to you & 5% to Zignaly.

The success fees are only taken once a position is closed and profits hit a new high.

profit levels chart example:

 

Please note: 

  • The success fee will be sent to your exchange Balance. 
  • We only take 5% from the followers' success fees, not from service providers. 

 

High-Water Mark Calculation

We are using a high-water mark, each time there are profits, and profits + current balance is above the high-water mark, the profits will be shared, however, if there are open positions with losses at that moment, the negative amount will be retained until the positions are closed.

high_water_mark1.png high_water_mark_chart.png

 

Retain

Every time that a position is closed, we analyze the status of the current open positions. If they are in profit (and generate new all-time high equity value), success fees will be paid, but if the current positions are in loss, we keep the current losses as a retainer. The next time that a position is closed, we calculate the pnl to balance the retain value.

 

Soft Disconnection Hard Disconnection
Currently, in the profit-sharing system, connected users can not disconnect immediately from a provider.

When selecting to cancel the disconnection, no new positions will open but it requires the user to wait until all currently open positions, have been closed by the trader in order to disconnect from the service.

The balance will remain locked during this time.

Important: In the case of futures accounts, the capital not used in the positions acts as Margin and is the collateral asset of the leverage used in each position. This means that funds could be lost in their entirety even when the user is not yet participating in any trade & if the service becomes liquidated.
See
this article, for more information about liquidations and margins.

 

As the service owner, your allocated balance will also remain locked, with the exception of transferred success fees and the options to reinvest or withdraw your profits from each position.

 

Frequently Asked Questions

Is it mandatory to trade within your platform?

Yes, but you can automate it with your own algorithm outside our platform. You can see more information in our Guide to sending signals.
If on the other hand, you are going to trade manually within the platform, you can see our article that explains how to use all the functionalities of our Trading Terminal.
In either case, to use our Profit Sharing service you must use a Zignaly Exchange account and manage it from our platform.

Can I use a Profit-Sharing service with my Binance account connected with an API?
No, Profit-Sharing services must be connected to a Zignaly Exchange Account. In this way, Zignaly can take care of the equitable distribution of the profits generated by this service, something that would be impossible using an exchange via API.
Do I have to have the funds in my Binance account or in my Zignaly Exchange account?
As mentioned before it is necessary to connect your Profit Sharing service with your Zignaly Exchange account, and for this, you need to deposit funds, otherwise, you will not be able to connect to your own service and therefore you will not be able to manage it.
How often are commissions (Success Fees) paid?
Commissions are paid immediately, every time you close a position, the corresponding Success Fees will be sent to your Wallet Balance of your Zignaly Exchange Account.
Where can I see my contracts?
To view your contracts, you must log in to your Management tab within the profile of your Profit Sharing service.

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Learn more about Managing your service profile page

How can I list my service in the marketplace?
Zignaly will proceed with an evaluation before listing any new service. Please review the requirements mentioned in this article.

 

Continue to Create a Profit-Sharing Service

 

Understanding analytics

Zignaly Profit-Sharing Presentation

 

 

 

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