To help users reduce trial-and-error costs and enhance risk tolerance in Futures Copy Trading, LBank introduces the 「Loss Protection Voucher」—offering compensation for eligible loss-making orders within the voucher’s limit.  

This guide explains its core concept, ways to claim and use, settlement rules, and common questions to help you use it effectively.

What is a Loss Protection Voucher?

  1. The「Loss Protection Voucher」is a loss-compensation coupon designed for Futures Copy Trading. When a copy-trade order linked with this voucher incurs a loss, the platform will compensate the amount within the voucher limit.

  2. It does not alter the actual trading result or affect profit distribution—it only provides compensation for eligible loss-making orders.  

  3. Compensation is distributed in USDT, and after approval, it will usually be credited to the relevant account within 1–3 business days.

How to Claim?

  1. Manual claim: Go to「Personal Center > My Coupons > To Claim」to activate the voucher. From there, click「Use Now」to enter the Copy Trading page and start using it.

  2. Automatic distribution: In certain events, vouchers are directly issued to eligible user accounts without manual claiming.

How to Use?

When starting a new copy trade

  1. After activating the voucher, enter the Copy Trading page. The system will automatically match the most suitable available voucher based on your selected trader, trading pair, and investment parameters (prioritizing those with larger face values and earlier expirations).

  2. You can also manually choose a specific voucher or opt not to use any. 

  3. If a voucher is not applicable, the system will display the reason (e.g.,「Only valid for a specific trader」or「Only valid for fixed investment amount」).

  4. When clicking「Copy Now」on the voucher, the system will revalidate conditions. If not met, the voucher will not bind, but the copy relationship will still be established normally. 

  5. Before confirming the follow, ensure you complete「Copy Trade Parameter Settings」; For optimization, see「Copy Trading Optimization Settings & Recommendations」.

Using with an existing copy relationship

  1. If a voucher has already been bound to an existing copy relationship, it cannot be replaced or canceled until settlement or expiration.  

  2. If not yet bound and you still have available vouchers, you may select one while editing your copy settings—the process is the same as for new copies.

📌 A single 「Follower–Trader」 relationship can only bind one voucher at a time, and vouchers cannot be stacked.

Settlement rules

When does compensation apply?

The system triggers compensation only when all the following conditions are met:

  1. The voucher is marked「In Use」status and within its validity period.

  2. The closed order has a realized PnL less than 0 (actual trading loss; fees and funding rates excluded).

  3. The loss is not caused by the user’s manual close (must be triggered by the trader’s signal, take-profit/stop-loss, or liquidation).

  4. The position remains under「Protected」status for its full duration. Partial manual closure voids protection for that portion and subsequent losses.

  5. The trader, pair, and investment type comply with the voucher’s usage restrictions.

Compensation calculation & issuance

  1. The compensation amount equals the smaller of「actual loss amount」or「remaining voucher balance」and accumulates until the voucher limit is reached or it expires.

    • Example: With a 10 USDT 「Loss Protection Voucher」,

      1. if your copy-trade closes with a 5 USDT loss, the system fully compensates 5 USDT.

      2. If it closes with a 15 USDT loss, you receive the maximum of 10 USDT.

  2. Eligible losses accumulate during the voucher’s validity period until the limit is exhausted or the voucher expires, with unified settlement.

    • Exmaple: With a 10 USDT 「Loss Protection Voucher」,

      1. if losses of 5 USDT occur first (compensated);

      2. further eligible losses continue to accumulate compensation up to the 10 USDT cap or expiration.

  3. After review approval (typically 1–3 business days):

    • If you are still following the Lead Trader, compensation is credited to the copy trading sub-account.

    • If the follow has been canceled, compensation is credited to the spot account.

📌 All compensations generate fund flow records, viewable in「Order Center」.

Frequently Asked Questions

  1. Does the Loss Protection Voucher guarantee profits or zero losses?

    • No. It only compensates part or all of qualifying losses under specific conditions; it does not guarantee profits or cover all risks.

  2. Can one voucher be used for multiple Lead Traders or trading pairs?

    • That depends on the voucher rules:

      1. Vouchers limited to specific Lead Trader/trading pair apply only to those.

      2. Unrestricted vouchers may apply broadly but remain subject to other conditions.

    • Please check each voucher’s Usage Rules for details.

  3. Why do I have an activated voucher but cannot see or select it when placing an order?

    • Possible reasons: Voucher pending activation, expired, ineligible trader/pair/investment type, or trader under risk control. Please check the details under 「My Coupons」.

  4. What happens if I cancel a copy? 

    • If canceled while under protection, the voucher immediately loses its effect and future orders will no longer be compensated. The system will display a reminder—please proceed cautiously.

  5. Why wasn’t compensation triggered for some loss orders? 

    • Common causes: No active voucher linked, manually closed trades, voucher restrictions not met, voucher quota exhausted, or voucher already settled.  

    • If uncertain, please contact Customer Support with your Order and Voucher ID for review.

  6. How to confirm if a position is under protection?

    • 「Order Center > Current Orders」shows a Protected label.

    • 「My Copy Trades > Lead Traders」list shows Protected indicators.

    • Historical orders display Pending Compensation or Compensated tags.

  7. When The process initiates in any of these cases, with Pending Compensation or Compensated tags appearing in historical orders:

    1. Voucher limit fully used.

    2. Voucher expires, triggering settlement of accumulated eligible losses within the period.

    3. The user stops following the Lead Trader, ending new protected orders.

    • 
After initiation, the system reviews the case. Upon approval, compensation (in USDT) is distributed within 1–3 business days. Check Order Center fund flows or contact support for confirmation.

Reminder

LBank‘s Loss Protection Voucher aims to provide an extra risk buffer for copy traders but cannot eliminate all market volatility risks and does not constitute investment advice or profit guarantees. Please fully understand the rules and conditions, trade rationally based on your risk tolerance, strictly control position size and leverage, and make prudent decisions.

For assistance, please contact 24/7 Online Customer Support at any time.