Copy-Trading Mechanism

The Copy-Trading System is a key component of HyperTrend’s Application Layer, representing the platform’s SocialFi functionality that connects trading, credit, and community interaction. It allows experienced traders to lead and mentor others, enabling collaborative profit-sharing and collective growth. Only users with high credit scores and strong trading performance are qualified to become Lead Traders, ensuring trust and strategy quality.

Lead Process

1. Becoming a Lead Trader

Applicants must meet strict eligibility criteria:

• Credit score above the high-credit threshold (e.g. ≥800)

• Consistent historical trading performance

• No record of default or malicious activity

Upon approval, the trader is issued a Lead Trader NFT representing verified status and governance identity.

2. Trading on Hyperliquid

• HyperTrend tracks the Lead Trader’s real-time activity on Hyperliquid.

• Smart contracts replicate their positions across all followers’ accounts with near-zero delay.

• Trade details and outcomes are fully transparent and recorded on-chain.

Copy Process

1. One-Click Following

• Users can browse a leaderboard of verified Lead Traders, reviewing their credit and performance metrics.

• With a single click, they can set follow ratios, capital limits, and stop-loss thresholds.

• When the Lead Trader executes an order, the system automatically mirrors it proportionally.

2. Settlement and Exit

• Followers can exit at any time; contracts will close all linked positions.

• Profits are distributed automatically via smart contracts according to predefined ratios.

• All settlement data are stored on-chain for auditability.

Incentive Structure

Follower Benefits

• Lower learning costs and reduced trial errors

• Higher probability of profitability

• Access to proven strategies and decision-making frameworks

• Educational value through real-time observation of expert trading behavior

Lead Trader Rewards

• Revenue Model:

  • Profit-sharing (e.g. 10–20% of follower net profit)

  • Management fees based on assets under management (AUM)

• Credit Bonus:

  • Higher credit scores yield better profit-sharing tiers

• Reputation Benefits:

  • Recognition as “Star Trader”

  • Increased visibility within the community

  • Ability to monetize reputation through transparent performance

Platform Value

• Revenue through commissions and performance fees

• Enhanced liquidity, user engagement, and retention

• Distinctive “social trading” identity within the DeFi ecosystem

Risk Control and Governance

Credit Gatekeeping

Only users above the credit threshold may lead trades.

Strategy Risk Monitoring

The platform monitors drawdowns, volatility, and leverage ratios; if risk exceeds tolerance, new followers are restricted.

Follower Safeguards

• Individual capital and loss limits

• Real-time alerts for excessive risk

• AI-assisted stop-loss recommendations

AI Matching and Trader Profiling

• The AI Matching Engine leverages the Gravity Index and user preference data to recommend suitable Lead Traders. The personalized recommendations align follower risk appetite with trader style.

• Visual analytics dashboards display:

  • Profit and volatility curves

  • Market-phase adaptability

  • Strategy labels (trend, contrarian, scalping, swing, etc.)

Core Value

HyperTrend transforms copy-trading from result replication to skill transmission. By combining credit-based qualification, AI-powered matching, and transparent smart contracts, the system achieves:

• Transparency: All trades and outcomes are verifiable on-chain

• Trust Hierarchy: High-credit traders lead; low-credit users learn

• Collective Growth: Knowledge compounds through shared experience

In essence, the Copy-Trading System is not merely a profit mechanism —it is a social learning protocol that enables every follower to evolve into a future leader within the HyperTrend ecosystem.