Dear Tapbit User,
In order to prevent the negative impact of order brushing activities by copy traders on the platform’s trading environment, we will conduct regular reviews of copy trader accounts identified with order brushing risks. Based on the risk level, the following measures will be implemented:
For low-risk copy trader accounts:
1. For accounts identified with order brushing risks, we will send warning notifications or emails to the copy trader and their followers. The platform will monitor the account for a week, and if the risk index returns to normal, the copy trading functionality will not be affected.
2. If the risk index has not been reduced one week after the warning notification or email is sent, we will cancel the display of the account and restrict its copy trading functionality.
For high-risk copy trader accounts:
For high-risk copy trader accounts, we will issue notifications and warnings to the relevant accounts, explicitly instructing the copy trader to cease order brushing activities. Additionally, to uphold platform fairness, we will promptly remove the account from display and restrict its copy trading functionality.
*Note
(1) Restrictions of Copy Trading:
①This will allow followers who are currently following the copy trader to keep following existing positions while permitting the copy trader to continue opening and closing positions as usual. However, followers who are currently following the copy trader can not open new positions based on the copy trader’s signals but can close positions that were opened while following the copy trader before the restriction by following the copy trader‘s close position signals.
② The backend system will prohibit other users from initiating new followings of the copy trader(where “other users” refer to those who are not currently following the copy trader).
*If the copy trader is still visible, during the “copy trading restrictions” period, when a new follower attempts to follow this copy trader, they should not be able to follow successfully. Instead,this notification will appear:
“The trader is restricted from copy trading due to high-frequency trading. Please try again later.”
(2) Discontinuation of Display:
Cease the displaying the copy trader on the platform, including but not limited to: copy trader list display and search results, website homepage recommendations, and activity recommendations.
(Note: Followers who are currently following the copy trader will still be able to see the copy trader in their “My Following” list.)
(3) Risk Index:
The risk index is calculated based on over 10 factors such as trading frequency, percentage of high-frequency trading, and profit/loss ratio, using different weightings for each factor. The exact formula for the index is not disclosed externally due to risk management requirements.
Thank you for your support and trust in Tapbit!
Tapbit Team
11/25/2024
