You are evaluating this like a TRAD league draft but it is RT.

Ken still has to cut some guys to get a chance to draft in the monthly FA draft.

In addition CMick will get 2 picks in the upcoming draft for the extra players he traded.

So you need to wait to see who Ken has to cut and who CMick picks up.

Then it will be 3 players for CMick vs 3 players for Ken plus Ken loses 2 players so for Ken it is a 3 player for 5 player trade and for CMick a 3 player for 3 player trade, not the 3 for 1 it seems.