PNL Settlement

sujiko utilises a pnl settlement mechanism that consists of isolated pnl pools for each market when a trader opens or increases a position, the average entry price is calculated and stored on chain when a trader closes or reduces a position, the average exit price is calculated and used to determine the profit or loss of the closed position realising pnl realising pnl occurs when a trader closes an open position by doing so, the unrealised pnl becomes claimable and allows the trader to withdraw or deposit the associated funds a trader's net pnl is the sum of all realised pnl for instance, if a trader closes two positions, one with a positive pnl and one with a negative pnl, their net pnl is the sum of these two pnls claiming realised pnl to withdraw or trade a pnl, a trader must first claim it each market has its own pnl pool, which includes accumulated funds from realised losses by traders the pnl pool balance is also topped up through a proportion of trading fees this mechanism prevents traders from withdrawing more from the platform than exists thus, a trader can only claim a positive pnl if the market’s pnl pool balance has enough to cover it moreover, a trader can only claim a positive pnl up to a daily settlement limit, which is based on the average daily claims made by all traders including a sufficient buffer if a trader wishes to claim more than the daily settlement limit, they will have to wait until the following day realising pnl vs claiming pnl sujiko's architecture is designed to prevent negative impact events from affecting the protocol consequently, there is a difference between closing a position (which realises unrealised pnl = realised pnl) and claiming realised pnl example trader has a position open market madlads perp direction long avg entry price $1,345 56 position size 2 contracts market pnl pool balance claim $1,000 market pnl settlement limit per day $5,000 mark price moves up to $1,650 25 unrealised pnl (mark price avg entry price) (order size in contracts) = $1,650 25 $1,345 56 2 = +$609 38 trader closes the entire position with a market sell trade (realising upnl) avg entry price $1,345 56 avg exit price $1,645 99 realised pnl (avg exit price avg entry price) (order size in contracts) = $1,645 99 $1,345 56 2 = +$600 86 trader claims his position’s realised pnl claim amount is below limit, trader is allowed to claim market pnl pool balance after claim $1,000 $600 86 = $399 14 recap isolated pnl pool per market each market has an isolated pnl pool traders can only claim pnl for their position from the pnl pool associated with the market if the balance in the pool is insufficient to cover the claim, the trader must wait until the pnl pool balance increases daily settlement limits a trader can only claim up to the daily claimable limit, which is based on the average daily claims made by all traders incl a sufficient buffer time delayed settlement if a trader wishes to claim more than the daily settlement limit, they will have to wait until the following day