💸PnL Settlements

Open position settlement and account value calculations on Blitz.

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

PnL = Market Value - Cost

On Blitz, you will find two PnL metrics:

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

2. Position PnL = A specific position’s PnL.

Perp PnL can be viewed by visiting the Blitz app pages:

• Portfolio Overview

• Perpetual Positions

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

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

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Account Value

It is important to note:

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

Instead:

Account Value = Assets - Borrows +/- Unsettled USDB

Balances will change constantly as USDB is automatically settled on the back-end from perpetual trading into balances.

Eventually:

Total Settlements

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.

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Perpetual Settlements – Settled & Unsettled USDB

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

1. Winners: Open positions with positive PnL.

2. Losers: Open positions with negative PnL.

A settlement happens when there is a transfer of USDB 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 USDB

• Settled USDB

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

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

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

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

Settled USDB = PnL that has already been transferred to the current USDB balance on the Portfolio Overview page on the Blitz app.

Users can view their Unsettled USDB 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 Blitz app UI to:

• Portfolio → History → Settlements Table

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

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

What if users don’t have USDB and have negative PnL?

• PnL will continue to settle. Users without USDB but positive account health will borrow USDB automatically.

Users are advised to keep note of the above section on PnL Settlements as they manage risk.