Entry Price and PnL

On VDEX, entry price, unrealized PnL, and closed PnL are client-side conveniences designed to help traders monitor their positions. These values are not part of core protocol accounting and do not affect execution, margin, or settlement directly.

The protocol’s fundamental state is based on two elements:

• Margin: The collateral available to support open positions

• Trades: The execution history that determines exposure and position sizing

From these two sources, frontend interfaces can compute:

• Entry Price: The average price at which the current position was built, based on weighted execution prices

• Unrealized PnL: The difference between entry price and current mark price, scaled by position size

• Closed PnL: Realized gains or losses from fully or partially closed positions

The protocol itself enforces margin, liquidation, and funding logic based on real trade activity and balance state, not on any derived frontend metrics.