Profit and Loss Calculation

Venkate Coin-Margin Contract users' profits and losses come from three aspects: trading fees, funding fees, and closing profit and loss.

Trading Fees

• Taker Fee (Liquidity Taker Fee): Fee = Position Value x Taker Fee Rate
• Maker Fee (Liquidity Provider Fee): Fee = Position Value x Maker Fee Rate

Funding Fees

Based on the funding rate's positive or negative value and the user's position direction (long or short), users will either earn or pay funding fees.

Funding Fee = Funding Rate x Position Value

Profit and Loss Calculation

Realized Profit and Loss:

1.Coin-Margin Contract (Inverse Contract)

• Long Position = (1/Opening Price - 1/Closing Price) x Position Quantity x Contract Value
• Short Position = (1/Closing Price - 1/Opening Price) x Position Quantity x Contract Value

2.USDT-Margin Contract (Linear Contract)

• Long Position = (Closing Price - Opening Price) x Position Quantity x Contract Value
• Short Position = (Opening Price - Closing Price) x Position Quantity x Contract Value

Unrealized Profit and Loss:

• Coin-Margin Contract (Inverse Contract)
  • Long Position = (1/Opening Price - 1/Fair Price) x Position Quantity x Contract Value
  • Short Position = (1/Fair Price - 1/Opening Price) x Position Quantity x Contract Value
• USDT-Margin Contract (Linear Contract)
  • Long Position = (Fair Price - Opening Price) x Position Quantity x Contract Value
  • Short Position = (Opening Price - Fair Price) x Position Quantity x Contract Value

Example 1:

A user buys 10,000 BTCUSDT perpetual contracts at 7,000 USDT as a Taker; taker fee = 0.05%, maker fee = -0.05%, funding rate = -0.025%.

• Trading Fee: 7,000 x 10,000 x 0.0001 x 0.05% = 3.5 USDT
• Funding Fee (user receives): 7,000 x 10,000 x 0.0001 x (-0.025%) = -1.75 USDT

If the user closes 10,000 contracts at 8,000 USDT as a Maker:

• Realized Profit and Loss: (8,000 - 7,000) x 10,000 x 0.0001 = 1,000 USDT
• Closing Fee (user receives): 8,000 x 10,000 x 0.0001 x (-0.05%) = -4 USDT
• Total Realized Profit and Loss: 1,000 + 4 + 1.75 - 3.5 = 1,002.25 USDT

Example 2:

A user buys 10,000 BTCUSDT perpetual contracts at 7,000 USDT as a Taker; taker fee = 0.05%, maker fee = 0.05%, funding rate = -0.025%.

• Trading Fee: 7,000 x 10,000 x 0.0001 x 0.05% = 3.5 USDT
• Funding Fee (user receives): 7,000 x 10,000 x 0.0001 x (-0.025%) = -1.75 USDT

If the user closes 10,000 contracts at 8,000 USDT as a Maker:

• Realized Profit and Loss: (8,000 - 7,000) x 10,000 x 0.0001 = 1,000 USDT
• Closing Fee (user pays): 8,000 x 10,000 x 0.0001 x 0.05% = 4 USDT
• Total Realized Profit and Loss: 1,000 - 4 + 1.75 - 3.5 = 994.25 USDT