Recently Pionex app has updated a new feature called "Release Profit", and users can release their profits from the Grid Trading Bot and Reverse Grid Bot.
But the algorithm of how is this data calculated is not published, so that number might have confused quite a lot of users. Hence we write this article to tell how is it calculated.
What's the formula？
Releasable Profit = Total value of your coins in the bot - The coins placed as "Grids" - Reserved Fee
The Reserved Profit includes 2 parts, the base part and quote part (base means the coin before the /, and the quote means the coin after the /. e.g. BTC is base and USDT is quote in BTC/USDT). That's because you need to pay base as fee when you buy a coin, while quote as fee when you sell a coin.
Why is my Releasable Profit 0？
To make the Grid Trading Bot run stably on Pionex, not like using the API in other exchanges, we lock double base reserved fee and one quote reserve fee (because grid trading bots arbitrage quote to be profit).
So when some users want to release their profits, they will find their Grid Profit to be positive, but the Releasable profit is 0. That's because some of your profit is locked as double base reserved fee. The fee is 0.05%, so doubled fee is 0.1%, and it also need to meet the minimum trading volume limitation. So if your investment is small and the grid profit is low, maybe it's less than the reserved fee and you can not release it.
Why is my Releasable Profit greater than my Grid Profit?
We are always trying to use all of your investment so that we will buy required coins in bathes when creating the bot. However, because of the minimum trading volume limit, we may not make use of all of your investment, and that part will be locked in the bot, and can be released using the Release Profit feature.
We will also demonstrate the detailed numbers in the app to make you more clear :)