KCEX Futures PNL Calculation Formulas: A Detailed Explanation of Trading Fees, Funding Fees, and Realized PNL

This article provides a detailed introduction to the calculation methods for PNL in KCEX futures trading, including the formulas for Maker and Taker fees, perpetual futures funding fees, closed PNL, unrealized PNL (floating PNL), and realized PNL. BTC/USDT futures examples are also provided to help you understand how the relevant fees and PNL are calculated.

1. Calculating Futures Trading Fees

Futures trading fees are divided into Taker fees and Maker fees. The formulas are as follows:

• Taker Fee = Average Fill Price × Number of Futures × Face Value × Taker Fee Rate

• Maker Fee = Average Fill Price × Number of Futures × Face Value × Maker Fee Rate

Example:

Assume that the current Maker fee rate is 0% and the Taker fee rate is 0.01%. You buy 1 BTC in BTC/USDT futures as a Taker at a price of 50,000 USDT. The trading fee is calculated as follows:

Trading Fee = 50,000 × 1 × 0.01% = 5 USDT

If you sell 1 BTC as a Maker at a price of 50,000 USDT, the trading fee is calculated as follows:

Trading Fee = 50,000 × 1 × 0% = 0 USDT

2. Calculating Futures Funding Fees

Funding fees are a mechanism unique to perpetual futures. Under normal circumstances, funding fees are settled once every eight hours. When the funding rate is positive, long-position holders pay short-position holders. When the funding rate is negative, short-position holders pay long-position holders. At settlement, the position value is calculated using the current mark price. The formulas are as follows:

• Funding Fee = Funding Rate × Position Value

• Position Value = Mark Price × Position Quantity (in the underlying asset)

Example:

At the funding settlement time, you hold a 2 BTC long position in BTC/USDT futures. The current mark price is 50,000 USDT and the funding rate is +0.02%. Since the funding rate is positive, long-position holders must pay short-position holders.

Funding Fee Payable = 50,000 × 2 × 0.02% = 20 USDT

If the funding rate is -0.02%, you will receive a funding fee of 20 USDT.

3. Calculating Closed PNL

Closed PNL refers to the actual profit or loss generated when a position is closed. The formulas are as follows:

• Long Position Closed PNL = (Closing Price - Average Entry Price) × Position Quantity (in the underlying asset)

• Short Position Closed PNL = (Average Entry Price - Closing Price) × Position Quantity (in the underlying asset)

Example:

You open a long position in BTC/USDT futures by buying 1 BTC at 58,000 USDT and later close the position at 60,000 USDT.

Closed PNL = (60,000 - 58,000) × 1 = 2,000 USDT

4. Calculating Unrealized PNL

Unrealized PNL, also known as floating PNL, reflects the current book profit or loss of an open position and is calculated using the mark price. Floating PNL is only the current theoretical profit or loss. Since the position has not actually been closed, unrealized PNL cannot be transferred out of the futures account. The formulas are as follows:

• Long Position Floating PNL = (Mark Price - Average Entry Price) × Position Quantity (in the underlying asset)

• Short Position Floating PNL = (Average Entry Price - Mark Price) × Position Quantity (in the underlying asset)

Example:

You open a long position in BTC/USDT futures by buying 1 BTC at 58,000 USDT. The current mark price is 59,000 USDT.

Floating PNL = (59,000 - 58,000) × 1 = 1,000 USDT

5. Calculating Realized PNL

Realized PNL refers to the profit or loss from positions that have been closed and settled into the account balance. It includes trading fees, funding fees, and closed PNL. The formula is as follows:

• Realized PNL = Closed PNL + Funding Fees - Trading Fees (including opening and closing fees)

Example:

Assume that at 11:00 in the morning, a user opens a long position in BTC/USDT perpetual futures by buying 1 BTC as a Taker at a price of 50,000 USDT. The Taker fee rate is 0.01%. The user continues to hold the position until the funding fee is settled at 16:00. The funding rate is +0.02%, meaning that long-position holders pay short-position holders. The calculations are as follows:

(1) Trading Fee = 50,000 × 1 × 0.01% = 5 USDT
(2) Funding Fee = 50,000 × 1 × 0.02% = 10 USDT (payable)

Realized PNL at this point = 0 - 10 - 5 = -15 USDT

The user continues to hold the position until 00:00 the following day. The funding rate is -0.01%, meaning that short-position holders pay long-position holders. The user then closes the entire position at 02:00 at a price of 55,000 USDT. The calculations are as follows:

(3) Trading Fee = 55,000 × 1 × 0.01% = 5.5 USDT
(4) Funding Fee = 50,000 × 1 × -0.01% = -5 USDT (receivable)
(5) Closed PNL = (55,000 - 50,000) × 1 = 5,000 USDT

Final Realized PNL = -15 + 5,000 + 5 - 5.5 = 4,984.5 USDT

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