PnL in FIVA

When you check your positions in FIVA, you'll notice a "PnL" figure displayed alongside each of your investments. This number represents critical information about your investment's performance, but what exactly does it mean and why should you care about it?

What is PnL?

PnL stands for "Profit and Loss" – it's the definitive measure of your investment performance. Rather than just showing you how much your position is worth right now, PnL answers a more meaningful question: "Has this investment strategy made me better off than if I had simply held onto my original tokens?"

For example, if you deposited 100 TON into a yield strategy two months ago, your PnL tells you whether that decision has generated more value than if you had just kept those 100 TON in your wallet.

Why PnL is Measured in Base Assets

Your PnL is calculated in terms of what we call the "base asset" – the fundamental token that you've committed to the protocol to generate yield.

Think of the base asset as the "raw ingredient" that the yield strategy puts to work:

• In Tonstakers pools, TON is the base asset being staked to earn rewards

• In Storm Trade liquidity pools, tokens like USDT, TON or NOT are the base assets that earn trading fees

• In EVAA lending markets, USDT is the base asset generating interest

We calculate your PnL in terms of these base assets because it provides a clearer picture of your true performance. Imagine you deposited 100 TON when it was worth $3 each, and now TON is worth $5. Your dollar value would be up regardless of how the yield strategy performed. By calculating PnL in the base asset, we can show exactly how many additional TON tokens your strategy has earned compared to simply holding TON.

Your dashboard displays PnL in both USD value and base asset terms, giving you flexibility to view your performance in the format most relevant to your investment goals.

A positive PnL of +5 TON means you've gained 5 more TON than if you had just held onto your original deposit – your strategy is working! A negative PnL of -2 TON means you would have been better off just holding your tokens.

Additional Details

Total PnL: The Complete Picture

The PnL figure in your dashboard represents your total performance, combining:

• Realized PnL: Profits or losses you've already captured through withdrawals or token exchanges

• Unrealized PnL: The current gain or loss on your active positions based on present market conditions

By including both components, FIVA gives you the complete assessment of your investment's performance across all your interactions with the protocol.

For instance, if you've withdrawn some profits earlier and still have an active position showing gains, your total PnL captures both of these components together.

PnL Calculation Limitations

Your PnL calculation is based on transactions that occur through the FIVA interface. Since the system doesn't have visibility into external transfers or operations performed outside the platform, unusual token balance changes may affect the accuracy of your PnL metrics.

Using PnL to Improve Your Strategy

Your PnL isn't just a number – it's a powerful tool for optimizing your DeFi strategy:

• Compare PnL across different yield strategies to see which ones are performing best

• Track how your PnL changes over time to understand how different market conditions affect your investments

• Use PnL insights to decide when to shift assets between strategies

By paying attention to your PnL figures, you can make more informed decisions about where to allocate your assets in the TON ecosystem and maximize your returns over time.