Limit of Copiers' Equity in a Strategy

There is a limit on how much Initial Equity a Copier may have in one Strategy.

Currently, one Copier may allocate up to 0.1 BTC of initial capital to any separate BTC-denominated Strategy. It can be one Copying of 0.1 BTC as well as multiple Copyings of the same Strategy, not exceeding 0.1 BTC in total.

Individual copying limit for a COV, ETH, USD, USDT, or USDC-denominated strategy is 10,000 COV, 2.5 ETH, 5,000 USD, 5,000 USDT, or 5,000 USDC respectively.

There is no limit on how many different Strategies a Copy Trading user can copy with a maximum of 0.1 BTC for each separate Strategy.

One of the key characteristics of a Strategy is its Copiers Equity and Initial Equity

Copiers' Equity is the current total value of all active copyings of the Strategy, before profit distribution.

Initial Equity is the total initial amount of all active copyings of the Strategy. There is a limit to how much total Initial Equity can copy any particular Strategy.

Let's take a more detailed look at Initial Equity and how it works.

Large Equity volumes copying the same trading Strategy bear multiple market risks. The Initial Equity cap is intended to address them:

The Initial Equity cap means that if current Initial Equity of a Strategy is equal to or exceeds the cap, no new Copying can be started for that Strategy.

If total Initial Equity falls below the cap due to copiers stopping their copyings of the Strategy, new copiers can then begin copying that Strategy until the Initial reaches the cap.

Let's consider the copying examples of a Grade 5 Strategy capped at 20 BTC:

1️⃣ The Strategy has 100 Copiers with a total Initial Equity of 19 BTC:

2️⃣ The Manager made a 20% profit in the Strategy. This led to a Copiers’ Equity increase from 19 to 22.8 BTC. However, the Initial Equity is still 19 BTC, because Copiers didn’t stop or start new Copyings:

3️⃣ Some Copyers decided to book their profits and stopped copying the Strategy.

A total Equity of 2.28 BTC in 10 copyings was stopped, the profits and success fees were distributed to the Copiers, the Manager, and the platform. The remaining current Copiers’ Equity is now 20.52 BTC and the remaining Initial Equity is 17.1 BTC from 90 active copyings:

Strategy Grades reflect a Strategy's current Initial Equity cap, based on the amount of personal Equity locked in a Strategy by the Manager. In essence – the more personal capital a Manager has at stake in their Strategy, the higher their Initial Equity cap will be.

Strategy grading is intended to ensure that Managers exercise caution and responsibility towards Copying Equity. It prevents the appearance of a huge gap between a Manager's own capital in a Strategy and the Copiers' Equity. It makes it impossible for Managers to have hundreds of thousands of dollars in Copyers' Equity while risking only a few hundred dollars of their own capital.

There are 11 available Strategy Grades* based on the amount of Equity locked by a Strategy Manager:

* Strategy Grades and their corresponding conditions are subject to change.

** Manager's Equity may be locked at a higher withdrawal limit if the current Copiers' Equity exceeds a certain amount.

Upon creation of a Strategy, it is assigned Default ('0') Grade. This means that for a Strategy in a respective currency:

A Strategy's grade will be automatically upgraded to Grades 1, 2, 3 and 4 should the Manager's Equity reach the corresponding amounts (see table above).

Changing a Strategy's Grade to 5 or higher requires manual processing by the PrimeXBT team (subject to change in future updates). If a Manager wants to upgrade a Strategy to Grade 5 or higher to increase Initial Equity cap accordingly, they should copy the procedure below.

In order to align the interests of Copiers and Strategy Managers in the best possible way, an additional restriction on Manager’s Equity is applied in relation to the total Copiers’ Equity in a Strategy:

The restriction on Manager's withdrawals is intended to motivate Managers of successful Strategies to upgrade their Strategies, pass an account verification (KYC) procedure, apply proper risk management techniques, and prevent the appearance of a huge gap between a Manager's own capital in a Strategy and the Copiers' Equity.

The currently locked Equity in a Strategy is reflected on the Manage Strategy page:

A Strategy is automatically upgraded to Grades 1, 2, 3 and 4. If you're a Manager and you want to increase the Grade of your Strategy to level 5 or higher, the corresponding amount of the Manager’s Equity must first be locked in the Strategy. To do this:

If you're a manager and want to decrease the Grade of your Strategy (downgrade) to partially unlock the Manager's Equity for withdrawals:

1️⃣ A Manager allocates and locks 3 BTC in a Strategy:

2️⃣ The Manager makes a 10% profit afterwards, and the Manager's Equity increases from 3 BTC to 3.3 BTC:

3️⃣ At this point, Initial Equity is 40 BTC. The Manager now wants to withdraw 2 BTC from the Strategy and requests the Strategy's Grade to be decreased to 5:

4️⃣ Some copiers now decide to close their cppyings and both Initial Equity and current Copiers' Equity drop below 20 BTC:

A Manager starts a Grade 2 Strategy, putting in and locking 0.1 BTC of their own funds, with the Initial Equity capped at 3 BTC.

1️⃣ If the Copiers' Equity increases to 7 BTC due to the Strategy's performance:

2️⃣ If the Copiers' Equity decreases back to 3 BTC afterwards due to the Strategy's performance: