BETAWEB3

Settlement & PnL Calculation

Single-Asset Margin Model (USDC-M)

TTT perpetual markets operate under a Single-Asset Margin (USDC-M) model, where USDC functions as the primary collateral, margin, and settlement asset across all perpetual markets.

All trading-related calculations and settlements — including:

  • Margin allocation;
  • Unrealized PnL;
  • Realized PnL;
  • Trading fees;
  • Funding payments;
  • Liquidation settlement;

are denominated and settled in USDC.

Although perpetual contracts are quoted based on the underlying asset price, settlement always occurs in USDC.

Example:

BTCUSDC

  • BTC represents the underlying market exposure;
  • USDC represents the collateral and settlement currency.

If BTCUSDC moves:

  • from 80,000 → 81,000

the profit or loss is generated from BTC price movement, while the actual balance settlement is credited or deducted in USDC.

This structure allows traders to gain leveraged exposure to underlying crypto assets while maintaining:

  • Unified collateral management;
  • Stablecoin-based margin accounting;
  • Simplified settlement infrastructure;
  • Consistent risk calculations across all markets.

Position Margin & Collateral

When opening a perpetual position:

  • Collateral is allocated from the Futures Account;
  • Margin is locked against the position;
  • The position size is determined based on leverage and allocated collateral.

Example:

  • 100 USDC margin with 10x leverage;
  • Creates a 1,000 USDC position.

The allocated collateral acts as:

  • Initial Margin;
  • Loss absorption buffer;
  • Liquidation protection threshold.

Position margin dynamically changes based on:

  • Unrealized PnL;
  • Funding payments;
  • Additional margin adjustments;
  • Partial closes.

Unrealized PnL

Unrealized PnL represents the live floating profit or loss of an open position.

Unrealized PnL continuously updates in real time based on Mark price movement and is not finalized until the position is:

  • Closed;
  • Partially reduced;
  • Liquidated.

Unrealized PnL Calculation

TTT calculates Unrealized PnL using:

  • Position direction;
  • Entry price;
  • Current Mark Price;
  • Position size.

Long Position

Unrealized PnL = (Mark Price - Entry Price) × Position Size

Short Position

Unrealized PnL = (Entry Price - Mark Price) × Position Size

Unrealized PnL directly affects:

  • Account equity;
  • Margin ratio;
  • Liquidation risk;
  • Available margin.

Realized PnL & Settlement

Realized PnL is finalized when a position is:

  • Fully closed;
  • Partially closed;
  • Liquidated.

After settlement:

  • Profits are credited to the Futures Account;
  • Losses are deducted from the Futures Account balance.

Realized PnL settlement occurs in USDC.

The settlement engine continuously updates:

  • Account equity;
  • Margin balances;
  • Position collateral;
  • Available trading margin.

Mark Price Infrastructure

TTT uses Mark Price infrastructure to reduce unfair liquidations and prevent temporary market manipulation from affecting core risk calculations.

The Mark Price acts as the primary fair-price reference used by the risk engine and perpetual settlement infrastructure.

The Mark Price is used for:

  • Unrealized PnL calculation;
  • Liquidation checks;
  • Margin ratio calculations;
  • TP/SL trigger evaluation.

By default, TP/SL orders use the Mark Price as the trigger condition, although users can optionally switch the trigger type to Last Price.

Settlement Flow

The perpetual settlement lifecycle inside TTT generally follows:

Wallet → Futures Collateral → Open Position → Unrealized PnL → Realized Settlement → Futures Balance