Copy-trading providers may receive a share of eligible follower performance. The arrangement may be called a performance fee, profit share or success fee. The label and percentage are only the starting point: the governed terms must explain what performance is measured, over which period, after which adjustments and when an amount becomes payable.
Start with the fee definition
Identify the fee rate, calculation currency, measurement period and the account value used as the base. Ask whether the calculation uses realised profit, account equity, closed copied trades, all account activity or a provider-specific allocation. These choices can produce different results from the same market path.
Performance fee versus profit share
The two phrases are often used for a provider receiving part of eligible positive performance. They should not be assumed to be interchangeable across platforms. Current RockCopy terms and the secure portal should state the operative formula, parties, timing and any exclusions.
The rate needs a calculation base
An 18% example does not mean 18% of account balance, deposits or every profitable trade. If eligible net performance for a period were 1,000 and the governed fee rate were 18%, a simple illustration would produce 180 before other adjustments. This is not a statement of the RockCopy formula.
Follow Capital can help define a relationship, but it is not automatically the fee base. Review Balance, Equity and Follow Capital Explained before interpreting provider and follower dashboard figures.
High-water marks and prior losses
A high-water mark is a reference level designed to avoid charging performance fees twice on the same recovery. If value falls below the reference, later gains may first need to recover that decline before a new fee is calculated. Some arrangements use another loss carry-forward or reset method; others may not apply a high-water mark.
Cash flows must be separated
Deposits can increase account value without investment performance, while withdrawals can reduce it. A sound calculation method explains how these flows are adjusted so they are not mistaken for gains or losses. It should also state how starting or stopping mid-period is handled.
Realised and unrealised results
A fee based on realised results can differ from one based on equity because equity includes open-position movement. The terms should state whether open profit, open loss, financing, commissions, corrections and cancelled trades enter the calculation. Followers should be able to reconcile the amount to an account statement.
Accrued, pending and paid
- Accrued commonly means an amount has accumulated under the calculation but is not yet final.
- Pending commonly means an amount is awaiting the end of a period, validation or settlement.
- Paid means the transfer has completed under the platform record.
These labels may be implemented differently. Providers and followers should check the live definition, dispute window and settlement status rather than treating an estimate as cash already received or permanently owed.
Look at total cost, not one fee
Performance fees can reduce net returns in addition to spread, trading commission, overnight financing, conversion and other service costs. A provider's gross result is not the follower's net result, especially when execution prices or account conditions differ.
Copy-Trading Execution Gaps, Price Tolerance and Latency explains another source of follower-provider divergence.
A pre-follow fee checklist
- Read the current governed fee terms and effective date.
- Record the rate, base, period, currency and payment trigger.
- Confirm high-water-mark or prior-loss treatment.
- Check deposits, withdrawals, mid-period changes and open-position treatment.
- Identify spreads, commission, financing and conversion costs alongside the fee.
- Confirm how accrued, pending and paid amounts can be reconciled.
- Save the disclosure that applied when the relationship began.
Fees should be understandable before capital is connected. If the dashboard example and governed terms appear inconsistent, rely on the current terms and request clarification before proceeding.