Mark price & PnL

How WaterX prices assets and how your profit and loss is calculated.

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Index Price

The Index Price is produced by a multi-source oracle aggregation. WaterX uses both Pyth Network (pull oracle) and Supra (push oracle) as price sources, feeding into a weighted Price Aggregator to produce the final Index Price.

Prices from both oracle sources are filtered through outlier tolerance and weight thresholds, ensuring that anomalies from a single source don't affect the final price.

All WaterX markets are priced based on this aggregated Index Price.

Mark Price

WaterX uses an oracle-based pricing model — Mark Price = Index Price.

Mark Price is used for:

• Calculating Unrealized PnL

• Determining liquidation triggers

• Computing OI value in the Funding Rate calculation

• Triggering Limit Orders / SL / TP execution

PnL Calculation

Unrealized PnL

Real-time profit or loss while a position is open, fluctuating with the Mark Price:

Unrealized PnL (Long)  = Position Size (in base token) × (Mark Price − Entry Price)
Unrealized PnL (Short) = Position Size (in base token) × (Entry Price − Mark Price)

Position Size is measured in the base token (e.g. 0.1 BTC). PnL is denominated in USD.

Realized PnL

Profit or loss settled when you close a position:

Realized PnL = Unrealized PnL at close

Net PnL

Actual profit or loss after deducting all fees:

Net PnL = Realized PnL − Trading Fee (open) − Trading Fee (close) − Funding Fee − Borrow Fee

ROE (Return on Equity)

ROE = PnL / Initial Margin × 100%

Worked Example

BTC Long, 10x leverage, entry $60,000, collateral $1,000:

Collateral = $1,000
Position Notional = $1,000 × 10 = $10,000
Position Size = $10,000 / $60,000 = 0.1667 BTC

BTC rises to $63,000 (+5%):

Unrealized PnL = 0.1667 × ($63,000 − $60,000) = 0.1667 × $3,000 = $500
ROE = $500 / $1,000 × 100% = 50%

At close (assuming 24-hour hold):

Trading Fee (open)  = $10,000 × 0.03% = $3.00
Trading Fee (close) = 0.1667 × $63,000 × 0.03% ≈ $3.15
Funding Fee (24h)   ≈ $6.80 × 24 = $163.20 (assumed, varies by market)
Borrow Fee (24h)    ≈ $10,000 × 0.001% × 24 = $2.40 (assumed at 60% utilization)

Net PnL = $500 − $3.00 − $3.15 − $163.20 − $2.40 = $328.25
Effective ROE = $328.25 / $1,000 = 32.83%

Funding and borrow fees in this example are illustrative. Actual rates fluctuate with market conditions. The trading interface displays your real-time net PnL.