CoTrade Profit Sharing & Fees
The CoTrade Profit Sharing and Fee System defines how rewards and incentives operate within the DeCA ecosystem. It ensures fairness for all participants, from individual investors to pool creators, and aligns the interests of users and the platform with long-term success. All execution and settlement events are enforced by smart contracts, ensuring transparency, automation, and decentralization.
Pool Exit and Settlement
A CoTrade Pool can be closed in two ways:
The Host can close the pool at any time
The pool will close automatically when at least 51 percent of share holders vote to close
When a pool closes:
All open positions are settled on-chain
Profit and loss is calculated based on final equity
Funds are distributed to participants according to their share ratio
No user can prevent settlement once one of the above conditions is met
This structure preserves strategic control for the Host, while also empowering the community to close the pool collectively to protect shared capital.
Profit Distribution Model
Once settlement occurs:
All unrealized PnL is converted into realized profit or loss
Each participant receives their share of the final pool value based on ownership percentage
There are no fees on trading volume or share transfers. Value is realized only at settlement, which prevents short-term speculation and reinforces cooperative positioning.
Fee Model
DeCA charges fees only on profit
When a pool closes and profit exists, a 10 percent fee applies to net profits:
5 percent to the Host
5 percent to the Platform
Fee Transparency
All fee distribution is:
Visible on-chain
Executed through smart contracts
Immutable once triggered
The DeCA interface and blockchain explorers provide full visibility into:
Final pool equity
PnL calculation
Fee deduction (5 percent Host, 5 percent Platform)
Net user distribution
This guarantees accurate and verifiable settlement.
Incentive Alignment
The CoTrade Fee System creates a balanced environment where:
Users benefit from transparent and collective trading
Hosts earn rewards for effective pool management
The platform grows only when users succeed
This structure encourages disciplined strategies, transparent execution, and sustainable community-driven participation.
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