Coin-Margined Perpetual Account Equity
Account equity represents the total value of a user's perpetual contract holdings denominated in the base cryptocurrency. It's calculated as follows:
Perpetual Account Equity = Account Balance + Realized P&L + Unrealized P&L
Account Balance Breakdown
- Refers to the cryptocurrency amount held in your coin-margined perpetual contract account
- Includes transfers from spot accounts to perpetual contract accounts
- Adjusts during settlement based on realized gains/losses
Unrealized P&L Explained
Unrealized P&L reflects floating profits/losses on open positions that change with market prices:
Long Position Formula:
(1/Entry Price - 1/Last Price) × Contract Quantity × Contract Face Value
Short Position Formula:
(1/Last Price - 1/Entry Price) × Contract Quantity × Contract Face Value
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Example Calculation:
For 100 BTC contracts (face value $100) entered at $5,000/BTC with current price at $8,000:
(1/5000 - 1/8000) × 100 × 100 = 0.75 BTC unrealized profit
Realized P&L Components
Includes closed position profits/losses plus:
- Trading fees
- Funding payments
- All settled but uncredited amounts
Long Position Realized P&L:
(1/Entry Price - 1/Exit Price) × Closed Contracts × Face Value
Short Position Realized P&L:
(1/Exit Price - 1/Entry Price) × Closed Contracts × Face Value
Key Price Metrics
Entry Price vs. Position Price
- Entry Price: Average opening cost (never changes after settlement)
- Position Price: Dynamic price used for P&L calculations (adjusts post-settlement)
Settlement Example:
- Pre-settlement: Entry Price = Position Price = $10,645.1
- Post $12,000 settlement: Position Price resets to $12,000
After adding 200 contracts at $12,800:
- New Entry Price = $11,413.7
- New Position Price = $12,307.6
Performance Measurement
Position Returns
Formula:
Return = (Current Unrealized P&L + Settled P&L) / Initial Margin
10x Leverage Example:
100 BTC contracts ($100 face value) entered at $10,000, now at $11,500:
- Profit = 0.1304 BTC
- Return = 130.43%
Closing P&L vs Total Returns
- Closing P&L: Post-last-settlement profit only
- Total Returns: Cumulative profit from entry to exit
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Frequently Asked Questions
Q: How often does settlement occur in perpetual contracts?
A: Most platforms settle daily (typically GMT+8 16:00) to realize profits/losses and reset position prices.
Q: Why do entry and position prices differ after settlement?
A: Entry price remains your original cost basis, while position price resets to reflect post-settlement market conditions for accurate ongoing P&L calculation.
Q: How are funding payments factored into P&L?
A: Funding payments are included in realized P&L during settlements but don't affect entry/position prices.
Q: Does partial closing affect average prices?
A: No, both entry and position prices remain unchanged during partial position reductions.
Q: What's the difference between face value and contract size?
A: Face value represents the USD-denominated notional amount per contract (e.g., $100), while contract size refers to position quantity in lots.
Q: How does leverage impact P&L calculations?
A: While leverage affects margin requirements, all P&L formulas use actual trade prices and quantities—leverage simply amplifies both gains and losses proportionally.