Legal Analysis of the Relationship Between Leader and Follower in Social Trading Transactions: Re-reading Traditional Contracts in the Context of Data-Driven Electronic Agreements
Keywords:
Social trading, copy trading, trading data, emergent contracts, leader, followerAbstract
This study examines the legal nature of the relationship between the leader and the follower in social trading transactions—particularly copy trading and mirror trading—and demonstrates that this relationship is, in essence, a “consensual legal act,” even though its performance is carried out through automated and algorithmic systems. A comparative analysis of this relationship within the frameworks of sale, lease of services, settlement (ṣulḥ), and reward contract (juʿālah) shows that each framework explains only part of the reality of this data-driven relationship. Ultimately, the study proposes the “electronic analytical services contract” as an emergent contractual form grounded in Article 10 of the Iranian Civil Code, which integrates elements of traditional contracts and is compatible with the principles of good morals, economic public order, and the Electronic Commerce Act. This framework provides an efficient model for regulating leader–follower relationships and for the lawful development of social trading within the Iranian legal system.
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Copyright (c) 2025 Abutaleb Koosha, Mohammad Hadi Daraei (Author); Hamideh Zaree
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