PnL Settlements

PnL means “profit and loss.” This metric is the current market value of a position minus the cost to open the position.

$$\text{PnL} = \text{Market Value} - \text{Cost}$$

On bro.trade, you will find two PnL metrics:

• Perp PnL = Your total PnL across all open perpetual positions.

• Position PnL = A specific position’s PnL.

Perp PnL can be viewed by visiting the bro.trade app pages:

• Portfolio Overview

• Perpetual Positions

Position PnL can be found in the Perp Positions tables on the bro.trade app.

Users can also use Account Pins to pin Perp PnL to the top of their bro.trade app screen and monitor across different page views.

Account Value

It is important to note:

Account Value does NOT equate to [ Assets - Borrows +/- Perp PnL ]

Instead:

$$\text{Account Value} = \text{Assets} - \text{Borrows} \pm \text{Unsettled USDC}$$

Balances will change constantly as HONEY is automatically settled on the backend from perpetual trading into balances.

Eventually:

$$\text{Total Settlements} = \text{Perp PnL}$$

There is no economic effect to traders, BUT Assets and Borrows will change over time as PnL is settled. This process is covered in more depth below.

Perpetual Settlements – Settled & Unsettled HONEY

First, it’s important to define two types of open positions within the context of settlement on bro.trade.

1. Winners: Open positions with positive PnL.

2. Losers: Open positions with negative PnL.

A settlement happens when there is a transfer of HONEY from Losers to Winners. At this point, balances are altered accordingly.

Since this process is happening continuously, the lifetime PnL of a perpetual trade can be broken down into two parts:

• Unsettled HONEY

• Settled HONEY

Unsettled HONEY = HONEY that is yet to be transferred between accounts.

• If positive, users can expect the displayed amount to be deposited into their HONEY balance.

• If negative, users can expect the displayed amount to be removed from their HONEY balance.

This happens continuously and automatically while holding an open position. There is no action required by users.

Settled HONEY = PnL that has already been transferred to the current HONEY balance on the Portfolio Overview page on the bro.trade app.

Users can view their Unsettled HONEY balance by clicking on the icon beside Perp PnL. There is also an Unsettled column in the Balances Table that displays it.

This will vary up and down depending on the volatility of positions. It is NOT necessarily related to the lifetime PnL of positions.

For example, a positive PnL CAN have a negative settlement, and a negative PnL CAN have a positive settlement, depending on how long the positions are held and how much they move.

Settlement History can be viewed by navigating on the bro.trade app UI to:

• Portfolio → History → Settlements Table

Closing a Position -- Settlements are automatic when closing a trade, and any remaining unsettled HONEY will be realized into the HONEY balance. When closing a position, any remaining unsettled HONEY will be settled into the trader's HONEY balance. This settlement will normally occur within a few minutes.

Changing HONEY Balances -- Users with open positions will notice changes in HONEY balances over time. This is due to PnL being settled on the backend. It is normal behavior and will not affect the ability to trade.

What if users don’t have HONEY and have negative PnL? PnL will continue to settle. Users without HONEY but positive account health will borrow HONEY automatically.

Users are advised to keep note of the above as they manage risk.