When a lead trader adds margin and their ROI increases, it's because the "principal denominator" has changed. A copy trader's profit and loss is calculated independently based on their own capital and position—they do not share the same ROI formula.
1. First, understand how ROI is calculated
A lead trader's ROI is unrealized profit ÷ current effective margin. After adding margin, the denominator becomes larger, but the ROI calculation adjusts with the new base balance.
Binance Futures copy trading platform has updated the ROI calculation, introducing the concept of "maximum base balance" to replace "cumulative deposits". This means the lead trader's ROI is no longer simply "profit ÷ initial principal", but is calculated based on the maximum effective margin over a period. Adding margin increases the maximum base balance; if the market later rebounds, the profit amount stays the same but the ROI base has changed, making the ROI appear higher.
2. Why hasn't the copy trader's ROI changed?
The copy trader's position and margin are independent from the lead trader from the moment copying starts.
When the lead trader adds margin, the copy trader's account does not add margin synchronously—their margin amount, entry price, and liquidation price remain those from when they entered the copy. So even if the lead trader's ROI rises due to formula adjustments or margin addition, the copy trader's P&L is calculated independently and remains unchanged.
Some community users have pointed out: "The lead trader can add their own margin to hold a position and avoid liquidation, but copy traders cannot. So, if the holding strategy succeeds, the lead trader only shows a drawdown, while the copy trader may have already been liquidated."
3. Why does "lead trader not liquidated, but copy trader liquidated first" happen?
This is the core of the issue.
If a lead trader adds margin when close to liquidation, their liquidation price moves further from the market price, saving the position. The copy trader's position margin is fixed, with no addition, so when the price continues moving unfavorably, the copy trader's static liquidation price is hit first.
The risk documentation clearly states: "During copy trading, the lead trader may add margin, which could make your position risk higher than that of the lead trader."
4. What to watch for in practice
Step 1: Confirm whether you chose "ratio" or "fixed amount" when copying
Ratio copy: your position scales proportionally with the lead trader's position size changes, but if the lead trader adds margin, your position ratio will not automatically increase because the added margin is not replicated.
Fixed amount copy: each trade copies a fixed amount; the lead trader adding margin has no impact on your position size, but risk isolation is even worse—when the lead trader holds through a drawdown, you can only wait.
Step 2: Review the lead trader's historical behavior
What to do: Check the historical position records on the lead trader's detail page.
How to do it: Focus on whether there are records of "adding margin when repeatedly nearing liquidation". If a lead trader often relies on margin additions to hold positions, it means their strategy depends on "life support", and copy traders' risk will be significantly higher than the lead trader's own.
What counts as done: You have confirmed whether the lead trader has a history of frequent margin additions, and can judge whether it's worth continuing to copy.
Prerequisite: You are already on Binance Copy Trading and see the lead trader's ROI rising while your own profit hasn't changed.
Risk reminder: After a lead trader adds margin, the copy trader's position does not add margin synchronously. This means the copy trader's liquidation price is fixed, with larger risk exposure than the lead trader. If the lead trader weathers a pullback by adding margin, the copy trader may have already been liquidated during that pullback.
After completing the above, how to confirm you understand?
Open the lead trader's detail page and compare their "Maximum Drawdown" with the "Historical Margin Addition Records"—if they repeatedly maintain positions by adding margin while losing, the copier's risk is magnified. You should treat this as an important indicator for screening lead traders, not just look at the ROI figure.
