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CoTrade Share Mechanism

At the core of DeCA lies the CoTrade Share Mechanism, a system that tokenizes ownership and profit allocation within each CoTrade Pool. Every pool created on DeCA issues a unique share token that represents the holder’s proportional stake in the pool’s total capital, position, and eventual profit or loss.

This architecture transforms futures trading from an isolated individual activity into a transparent, on-chain cooperative system, where performance and ownership are always verifiable.

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Share Tokenization & Ownership

When a user creates a CoTrade Pool, the protocol issues share tokens specific to that pool.

Key principles:

  • Shares represent ownership of the pool’s capital and position

  • Share amounts determine entitlement to profit and loss

  • Shares are non-custodial and fully on-chain

  • Users join by contributing USDC and receiving shares in return

All allocations are managed by smart contracts, ensuring transparent and immutable ownership.

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Share Valuation

The value of each share reflects the real-time performance of the pool. As the pool gains or loses value, the implied share value adjusts accordingly.

Users cannot sell shares freely. Value is realized only when the pool closes, encouraging aligned strategy and collective discipline.

All valuations are viewable via the DeCA interface and on-chain data.

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Pool Exit, Voting, and Settlement

A CoTrade Pool remains active until one of the following occurs:

  • The position reaches its Take Profit (TP) target

  • 51 percent or more of share holders vote to close the pool

When the pool closes:

  • All PnL is settled on-chain

  • Returns are distributed based on share ratio

  • A 10 percent fee applies only on net profits:

    • 5 percent to the Host

    • 5 percent to the Platform

This fees apply only when users profit, reinforcing the principle that the platform wins only when users win.

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Pool Termination & Settlement

A CoTrade Pool remains active until one of the following conditions is met:

  • The Master Position reaches its predefined Take Profit (TP) target.

  • The Pool Creator (Host) manually closes the position.

When a pool ends:

  • All unrealized PnL is settled on-chain.

  • Profits or losses are automatically distributed to all share holders based on their ownership ratio.

During the pool’s lifecycle, joining CoTrade pool incurs a 1% transaction fee, distributed automatically as follows:

  • 0.5% to the Platform, supporting long-term protocol growth and maintenance.

  • 0.5% to the Pool Creator (Host), as a continuous incentive for strategy creation and pool management.

This structure ensures that rewards and fees are earned dynamically pool activity, rather than only at the end of a pool. It creates a fair and transparent ecosystem where both Hosts and the platform grow alongside user participation.

All settlements are executed automatically and verifiably on-chain, ensuring transparency, fairness, and zero reliance on centralized intermediaries.

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Transparency & Trustless Execution

All actions, including share allocation, valuation, voting, and distribution, execute through audited smart contracts.

Users can monitor in real time:

  • Pool size and leverage

  • Live PnL

  • Share distribution

  • Voting status

  • Settlement events and fee deductions

This ensures transparency, fairness, and decentralized execution.

Each CoTrade share represents ownership, alignment, and participation in a shared trading strategy. It is a mechanism for collective execution, shared conviction, and sustainable futures trading.

Sharing Risk. Sharing Profit. No Liquidate.

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