When a position closes, the program compares the fill price with your entry: rawPnl = size × (exit − entry) / entry, with the sign flipped for a short. A positive result is a win; anything else is a loss.
Your margin always comes back
On every close that is not a liquidation, your margin returns to available in the same transaction, less any loss. Only profit can be queued.
A winning close, step by step
- 01Deadband. The gain is computed as if the exit were
entry / 50,000(0.2 basis points) less favourable. If no gain is left, you get your margin back and nothing else: no loss, no fee, no paper. - 02Impact. The deadbanded gain is multiplied by a kept share that grows with the size of the move, up to 0.9. See The impact curve.
- 03Profit cap. The result is capped at 10 times your margin.
- 04Win fee. 2 % of the capped gain. What remains is your net profit.
- 05Payment. If the queue is empty and the house holds enough, you are paid now. Otherwise, see below.
When the house cannot pay
- Queue empty, house holds enough: the house pays
net + fee; you receivenetand the fee is distributed. - Queue empty, house short: the house pays what it holds now, the rest of
netgoes to the back of the queue line, and no fee is charged. - Queue already open: the whole
netis queued behind earlier winners and no fee is charged. Nothing jumps the line.
A queued amount is a claim. It is paid in order as losses and donations arrive. You collect whatever part has been paid from the trade page, at any time.
A losing close
loss = −rawPnl. You receive margin − loss immediately. Then:
- Queue empty: a 2 % loss fee is charged and distributed, the house keeps
loss − fee, and you mint paper onloss − fee. - Queue open: no fee is charged; the whole loss flows to the front of the queue line first, and you mint paper on the whole loss.
A worked win
BTC long, $100 margin at 20x, so a $2,000 position. Entry $80,000. The close fills at $80,800, a 1 % move.
| Step | Value |
|---|---|
| Raw gain | $2,000 × 1 % = $20.00 |
| Deadbanded exit | $80,800 − $80,000 / 50,000 = $80,798.40 |
| Deadbanded gain | $2,000 × 0.998 % = $19.96 |
| Kept share at a 0.998 % BTC move | 0.8832 |
| After impact | $17.63 |
| Profit cap, 10 × $100 | not reached |
| Win fee, 2 % | $0.35 |
| Net profit | $17.28 |
| Back to you | $117.28 if the house can pay; otherwise $100 now and a claim for the unpaid part |
A worked loss
Same position. The close fills at $79,200, a 1 % move against you. The queue is empty and the house holds less than $25,000.
| Step | Value |
|---|---|
| Loss | $2,000 × 1 % = $20.00 |
| Back to you | $80.00 |
| Loss fee, 2 % | $0.40: $0.20 to paper holders, $0.20 to the treasury |
| Kept by the house | $19.60 |
| Paper minted to you | $19.60 × 100 = 1,960 paper |
Your 1,960 paper now earns a share of every future fee and surplus, in proportion to all paper outstanding. See Paper and the mint curve.