BitMart Launches Capital-Protected Copy Trading, Introducing Loss Compensation Mechanism
- Core Viewpoint: BitMart has launched the innovative "Capital-Protected Copy Trading" product. Through a lead trader staking guarantee mechanism, it promises to compensate copy traders for their net trading losses, aiming to address the misalignment of interests and lack of trust inherent in traditional copy trading models.
- Key Elements:
- The core mechanism is "You copy, I cover losses." Lead traders are required to stake funds as risk margin and provide full compensation for the net losses of copy traders within a settlement cycle.
- Stringent risk controls are in place: A lead trader's account equity must be ≥10,000 USDT, the system enforces a maximum leverage cap of 5x, and requires their own capital to always cover at least 20% of the managed assets.
- High incentives are offered to attract top traders. Capital-protected lead traders can receive up to 70% in trading fee rebates and 60-80% in profit sharing.
- The platform aims to deeply align the interests of lead traders and copy traders through this model, rebuild trust, and lower the entry barrier for novice users.
- The disclaimer notes that trading fees and funding rates are not covered by the compensation and must be borne by the copy traders themselves.
Leading global digital asset trading platform BitMart has recently officially launched its innovative product — "Principal-Guaranteed Copy Trading". This model introduces a mechanism where signal providers stake collateral as a guarantee, committing to compensate copy traders for their net trading losses. It aims to address the issues of misaligned incentives and lack of trust prevalent in traditional copy trading.
In traditional copy trading models, followers typically bear the full brunt of market volatility alone. BitMart's "Principal-Guaranteed Copy Trading"颠覆了这一规则：signal providers stake their own funds as risk collateral, committing to fully compensate followers for any net trading losses incurred within a weekly settlement cycle.
"You Copy, I Cover" — Key Mechanism Highlights:
- Eliminates "Agency Risk": Losses are borne by the signal provider, while profits are shared by both parties. This not only safeguards the follower's principal but also incentivizes signal providers to adopt more prudent trading strategies.
- Stringent Entry Risk Controls: All principal-guaranteed signal providers undergo rigorous verification, requiring account equity ≥ 10,000 USDT. The system enforces a maximum leverage cap of 5x, eliminating high-risk gambling at the source.
- 20% Safety Cushion Mechanism: The system dynamically limits the scale of signal provision, requiring signal providers' own capital to always cover more than 20% of their Assets Under Management (AUM), ensuring sufficient compensation capacity.
To attract top-tier traders to this innovative model, BitMart has introduced an industry-leading incentive scheme: Principal-guaranteed signal providers can receive up to 70% in trading fee rebates and 60-80% profit sharing. This means only traders with genuine profitability dare to participate; and once they do, their interests become highly aligned with their users.
It's not just trading; it's a partnership. A BitMart spokesperson stated: "We aim to rebuild the foundation of trust in copy trading by deeply aligning the interests of signal providers and followers. Under the principal-guaranteed model, signal providers are not merely suppliers of trading signals but become trading partners who share both gains and losses with users, enabling more novice users to confidently take their first step into crypto investment."
Currently, Principal-Guaranteed Copy Trading is officially live. The first batch of rigorously vetted principal-guaranteed signal providers have opened their copy slots. Ensuring every act of trust is backed by tangible capital.
About BitMart
BitMart is a leading global digital asset trading platform with over 12 million users worldwide. Consistently ranked highly on CoinGecko, BitMart offers over 1,700 tradable assets with competitive fees. Upholding a philosophy of continuous innovation and financial inclusion, BitMart is committed to providing a seamless trading experience for users globally. To learn more about BitMart, visit the website, follow on X (Twitter), or join the Telegram for updates, news, and promotions. Download the BitMart App to trade anytime, anywhere.
Disclaimer
As per the user guide, trading fees and funding rates incurred during the trading process are not covered by compensation and must be borne by the follower. Use of BitMart services is at your own risk. All crypto asset investments are highly speculative and carry a significant risk of loss. Past, hypothetical, or simulated performance does not guarantee future results. Digital asset prices can be highly volatile, and buying, holding, or trading digital assets involves substantial risks. Please carefully assess whether participating in related trading is suitable for you based on your investment objectives, financial situation, and risk tolerance. BitMart does not provide any investment, legal, or tax advice.
