P&L Calculation

Position profit and loss is computed entirely from on-chain pool state — no oracles involved.

Long P&L

When closing a long, the locked airToken tokens are swapped back to airUsd via SWAP-3:

airUsdOut = lockedAmount * backedAirUsd / airToken.totalSupply()
pnl = airUsdOut - airUsdMinted

• If pnl > 0 — profit. You receive usdcIn + pnl (minus 1% close fee on profit).
• If pnl < 0 — loss. You can't close the position.

Short P&L

When closing a short, the synthetic airToken debt is bought back via SWAP-2:

cost = airUsd.totalSupply() * airTokenMinted / (backedAirToken - airTokenMinted)
pnl = lockedAmount - cost

• If pnl > 0 — the token price dropped, buying back the debt is cheap. Profit.
• If pnl < 0 — the token price rose, you can't close the position.

Live P&L on your NFT

The PositionNFT contract computes P&L in real-time using calls to the pool. This data is rendered directly in the on-chain SVG metadata — no off-chain service needed.

Important notes

• P&L depends on pool reserves at the time of closing, not at the time of opening
• Large positions relative to pool size will experience more slippage
• The three-curve design means long and short P&L are not perfectly symmetric