Commission Sharing

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What this function does is that when a new trader joins, 5% of their commission fee is distributed to existing stakeholders proportionally to the amount they staked on that option.

How the Traders Get Paid

1. The Stake (The Money Put In)

• Trader 1 put in a Stake of $300.

• Trader 2 put in a Stake of $200.

• The total existing Stake is $300 + $200 = $500.

The Stake is the amount of money a trader commits to the option.

2. The New Income (From Trader 3)

Trader 3 joins and has a Commission Fee (a cost for trading). The diagram shows this fee generates a total of $25 to be shared.

3. The Cash Income (The Payout)

The $25 is shared as Cash Income between Trader 1 and Trader 2. It is not split equally. It is split in proportion to their Stake.

• Trader 1 (who has a bigger Stake of $300) gets a bigger share of the cash: $15.

• Trader 2 (who has a smaller Stake of $300) gets a smaller share of the cash: $10.

The simple rule is: The more Stake you have, the more Cash Income you get when a new trader pays their commission.