<b>MOVING: 'negative carry' is the rev-share trap nobody names on the call</b>

<b>MOVING: 'negative carry' is the rev-share trap nobody names on the call</b>

A partnerships manager let this slip: on some perpetuals programs, rev-share is calculated on the exchange's <i>net</i> position against your trader — which means in a month where your referred traders win, the exchange's revenue from them is negative, and your rev-share can be reported as zero or rolled forward as a deficit.

Why affiliates miss it:
— You think rev-share = a cut of fees. On some derivatives books it's a cut of <code>net P&L vs the house</code>, which is a totally different beast.
— Winning traders are great for retention and terrible for that month's rev-share line.
— Ask the exact formula. 'Percentage of revenue' is meaningless until you know what revenue is defined as.

Get the definition in writing.

Watch this.