The profit rate calculation logic of Binance for copy trading indeed has significant flaws, especially reflected in the handling of the 'withdraw first, then deposit' scenario, which appears extremely unrigorous.
Core issue: Incorrectly identifying internal fund transfers as external fund changes.
Let me illustrate with my copy trading case:
· Initial capital: 1000 USDT
· Final profit: 3000 USDT
· Real ROI: (3000 / 1000) * 100% = 300%
However, when executing the operation of 'withdrawing profits of 2500 USDT first, then depositing an equivalent of 2500 USDT back', the system diluted my ROI significantly to below 100%. This completely contradicts financial common sense.
A reasonable calculation logic should distinguish between two scenarios:
✅ Scenario 1: Deposit first, then withdraw (current logic reasonable)
· Action: First deposit 10,000 USDT, after making a profit of 10,000 USDT, withdraw 10,000 USDT.
· System logic: Total invested capital is considered as 20,000 USDT, ROI = (10,000 / 20,000) * 100% = 50%.
· Evaluation: This logic is correct because it effectively prevents users from artificially inflating the yield by 'injecting external funds and then immediately withdrawing'.
❌ Scenario 2: Withdraw first, then deposit (current logic incorrect)
· Action: After using 10,000 USDT capital to make a profit of 10,000 USDT, first withdraw 10,000 USDT profit, then deposit back 10,000 USDT.
· Binance logic: Incorrectly considers the deposited 10,000 USDT as new capital, leading to dilution of ROI.
· Reasonable logic: Since the deposited 10,000 USDT ≤ the previously withdrawn 10,000 USDT, this is considered an internal fund transfer and does not introduce external funds. Therefore, the effective capital should still be the initial 10,000 USDT, and ROI should be (10,000 / 10,000) * 100% = 100%.
Conclusion and Recommendations
The current Binance algorithm clearly fails to recognize the essential distinction between 'internal fund return' and 'external new funds'. Repeated deposit and withdrawal operations will lead to the yield being infinitely diluted, causing the data to become severely distorted and completely losing its reference value.
It is recommended that Binance optimizes the algorithm as soon as possible: when the amount deposited by the user does not exceed the recently accumulated withdrawal amount, it should be regarded as an internal fund return, without resetting or diluting its original capital base. Only in this way can the yield data truly reflect the actual level of the trader, rather than being disturbed by irrelevant fund flow operations.