Each account in BitVenus will have a separate "contract account", because BitVenus currently only supports forward perpetual contract transactions based on USDT trading and settlement, traders need to deposit or transfer USDT funds from the wallet account to carry out contract transactions. The following contract asset information can be seen in the "assets - contract assets" page of the platform app.
Description of Contract Account Structure
Total assets of the account: transfer in - transfer out + realized profit and loss.
Realized profit and loss: the profit and loss generated by the user's closed position.
Unrealized profit and loss: the profit and loss generated by the current position held by the user, also known as floating profit and loss.
Margin balance: wallet balance + unrealized profit and loss.
Entrustment margin: the funds that contract traders need to freeze when issuing orders.
Maintenance margin: the minimum amount of funds that contract investors need to keep in their accounts in order to hold a certain contract position.
Available balance: funds available to the current user.
Profit and Loss Calculation
In BitVenus's forward perpetual contract, we define that the current marked price is P0 and the average price of the trader is P1, then the profit and loss calculation method of the trader is as follows:
a) in case of buying / going long: profit and loss PNL = (P0 - P1) * contract quantity * 1 * contract face value - transaction handling fee.
b) in case of selling / shorting: profit and loss PNL = (P0 - P1) * contract quantity * - 1 * contract face value - transaction handling fee.
List the calculation method of profit and loss:
a) Suppose a trader buys 100 BTC/USDT contracts at an average price of 7,000USDT, the current contract mark price is 8000, and the face value of the contract is 0.01BTC/contract without taking into account the service charge:
The trader's unrealized profit = (8,000 - 7,000) * 100 * 1 * 0.01 = 1000 USDT
b) Suppose a trader sells 100 BTC/USDT forward contracts at an average price of 7,000USDT, and then closes the position when the mark price is 6,000USDT. The face value of the contract is 0.01BTC/contract without taking into account the service charge:
The trader's realized profit = (6,000 - 7,000) * 100 * (-1) * 0.01 = 1000 USDT
The mark up price rather than the latest market price is used to calculate the unrealized profit and loss. Traders can view realized profits and losses and unrealized profits and losses in the position area in real time at any time.
BitVenus official website: https://www.bitvenus.me
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