Gate perpetual futures is a financial derivative suitable for cryptocurrency. You can choose to go long (buy) or go short (sell) based on market trends to achieve profits. If the market price is bullish, you can choose to go long (buy); if the market price is bearish, you can choose to go short (sell). The calculation of profits and losses (PnL) will vary depending on the type of contract, whether going long or short. Currently, Gate supports two types of perpetual futures: USDT-margined (USDT-M) and BTC-margined (BTC-M) perpetual futures.
PnL Calculation for USDT Perpetual Contracts
The profit and loss (PnL) calculation formula for the USDT Contract is as follows:
- PnL of Reducing Position = Position Size × Contract Multiplier × (Average Exit Price - Average Entry Price)
- The unrealized PnL can be calculated based on the last or mark price.
- Unrealized PnL based on Mark Price = Position Size × Contract Multiplier × (Mark Price - Average Entry Price)
- Unrealized PnL based on Last Price = Position Size × Contract Multiplier × (Last Price - Average Entry Price)
The Return % calculation formula for the USDT Contract is as follows:
- Return % = Unrealized PnL / Position Margin
- The position margin in the isolated mode refers to the amount occupied by the current position, including the initial margin and the manually added or reduced margin.
- The position margin in the cross mode can be calculated based on the average entry or mark price.
- Position Margin based on Average Entry Price = Average Entry Price × Amount / Leverage + Exit Fee
- Position Margin based on Mark Price = Mark Price × Amount / Leverage + Exit Fee
Example
Assume that User A buys 10 ETH_USDT contracts with 10x leverage in isolated margin mode , the average entry price is 2,500 USDT, and the mark price is 2,510 USDT.
Unrealized PnL = 10 × 0.01 × (2510 - 2500) = 1.00 USDT ROE = = [10 × 0.01 × (2510 - 2500)] / (250 / 10 + 250 × 0.075%) = 0.392 ≈ 39.2%
PnL Calculation for BTC Perpetual Contracts
Inverse Contract specifically refers to the BTC_USD contract. The profit and loss (PnL) calculation formula for the Inverse Contract is as follows:
- PnL of Reducing Position = Position Size × ( 1/Average Entry Price - 1/Average Exit Price)
- The unrealized PnL can be calculated based on the last or mark price.
- Unrealized PnL based on Mark Price = Position Size × ( 1/Average Entry Price - 1/Mark Price)
- Unrealized PnL based on Last Price = Position Size × ( 1/Average Entry Price - 1/Last Price)
The return % calculation formula for the Inverse Contract is as follows:
- Return % = Unrealized PnL / Position Margin
- The position margin in the isolated mode refers to the amount occupied by the current position, including the initial margin and the manually added or reduced margin.
- The position margin in the cross mode can be calculated based on the average entry or mark price.
- Position Margin based on Average Entry Price = Amount / Average Entry Price / Leverage + Exit Fee
- Position Margin based on Mark Price = Amount / Mark Price / Leverage + Exit Fee
Example
Assume that User B buys 3,000 BTC_USD contracts with 10x leverage in isolated margin mode, the average entry price is 50,000 USDT, and the mark price is 49,500 USDT.
Unrealized PnL = 3000 × (1 / 50000 - 1 / 49500) ≈ -0.000304 BTC ROE = [3000 × (1 / 50000 - 1 / 49500)] / 0.03 ≈ -1.01%
Notice
1.When calculating futures assets and margin ratios, the unrealized PnL is determined by the mark price. The actual PnL of reducing position is based on the actual exit price. You can find the average fill price by navigating to "Positions" > "Order History". 2.The PnL calculation does not include fees and funding costs. These can be viewed separately in "Positions" > "Transaction History", and are calculated independently from the actual data. 3.Realized PnL includes fees, funding costs, and the PnL of reducing position (calculated using the formula mentioned above). 4.When abnormal market volatility occurs, the platform's risk control system may impose restrictions on the available margin in your account to ensure trading safety. 5.Gate reserves the final right to interpret the product.
