Traders can share successful strategies on Mizar via the marketplace and get copied by users. In exchange, copied traders are rewarded based on their realized monthly profits.
This way, traders are rewarded for their performance, while other investors can benefit from copying them. The performance fees can range from 5% up to 50% and are set by the trader. The fees are shown in the marketplace by clicking on the strategy name.
Fees are calculated based on the realized monthly gross profits and get
- automatically withdrawn from the Mizar wallet every 24 hours (when realized daily profit)
- automatically credited from the Mizar wallet every 24 hours (when realized daily losses and the amount to be credited do not exceed the amount withdrawn)
IMPORTANT: over a calendar month, the total performance fee for a strategy cannot be negative. In case of loss, no performance fee will be applied for that month.
IMPORTANT: The performance fee is calculated on closed positions only. Unrealized Profit or Loss are not taken into account in the performance fee.
Check here to know more about the Mizar fee structure and how the performance fee can be reduced by staking MZR or trading through the Mizar Platform.
Example (profit):
- Trader A follows Trader B and copy-trades his/her strategy. The performance fee applied from Trader B is 10%. At the end of the second day of August, Trader A performs a total gross profit (i.e. no volume fee or exchange fees applied) of $200, with the STAR level of Trader A being "Nebula", which gives Trader A, no discount on his performance fee. At the end of the day, Trader A pays the following performance fee: $200 * 10% = $20.
- At the end of the second day of August, Trader A performs a total gross profit of +$500, with "Proto-star" as STAR level (10% discount on performance fee). At the end of the day, Trader A pays the following performance fee: $500 * 10%* (100%-10%) = $45.
- The strategy does not open any other position until the end of the month. The total Profit and Loss at the end of the month is +$700 and the user paid a total performance fee of $65 (9.2%).
Example (loss):
- Trader A follows Trader B and copy-trades his/her strategy. The performance fee applied from Trader B is 5%. During the first day of August, Trader A performs a total gross profit of +$2,000, with "Black Hole" as STAR level (50% discount on performance fee). At the end of the day, Trader A pays the following performance fee: +$2,000 * 5% * 50%= $50
- During the second day of August, Trader A performs a total gross loss of -$500, with "Black Hole" as STAR level. Trader A is refunded as following: -$500 * 5% * 50%= -$12.5. The cumulated performance fee paid over the calendar month of August is $50-$12.5=$37.5, while the cumulated gross profits are $1,500.
- During the third day of August, Trader A performs a total gross loss of -$2,500, with "Black Hole" as STAR level. Trader A is refunded $37.5 (the cumulated performance fee paid until that day) and the remaining $25 ($37.5 - $2,500 * 5% * 50% = $25) is accounted for and usable to discount the performance fee over the next days, until the end of the month.
- Scenarios:
- The strategy does not open any other position until the end of the month. The loss is -$1,000, and the user does not pay any performance fee.
- The strategy opens a new position and performs a profit of +$1,500, with "Black Hole" as STAR level. At the end of the day, Trader A pays the following performance fee: +$2,000 * 5% * 50% - $25= $25. The monthly profit is +$500 and Trader A pays a total of $25 (5%).
IMPORTANT: If a user has no available Mizar credits nor free volume left, the bots could run in a limited mode and positions could not be opened or managed. Always make sure to have enough Mizar credits or free volume to avoid bots running in limited mode. Read more here.