Your trading result depends on the price move, position size, and direction you chose. Closing a position realizes its profit or loss. Trading fees and funding also affect the final result.
Bloxwap trades perpetual futures on Hyperliquid. The examples below follow a position from entry to exit in USDC, a stablecoin designed to track the US dollar.
How a position settles
You open a trade in one direction:
- Tap UP to go long. You think the price will rise.
- Tap DOWN to go short. You think the price will fall.
The collateral backing your position is its margin. Leverage multiplies the position size: at 10× leverage, 50 USDC of margin supports a $500 position.
Price gains and losses remain unrealized while the position is open. Closing realizes that result. Fees are charged on fills, and funding can change your balance while you hold the position.
Closing in profit
You go long on Bitcoin with 50 USDC margin at 10x leverage. That controls a $500 position.
Bitcoin rises 4%. Your $500 position gains 4% → +$20.
Before costs, that's $70: your $50 margin plus the $20 gain. Bitcoin moved 4%, while the gain is 40% of your starting margin.
The $20 is gross profit, before costs. At the standard base-tier rate of 0.095% per fill in the fee guide:
- Opening $500 costs $0.475.
- Closing at $520 costs $0.494.
- Net profit after these fees is $19.031, or about $19.03, before funding.
Live net P&L in the app includes trading fees and available funding data. It remains an estimate until the closing order fills.
Closing at a loss
Same setup: 50 USDC margin, long Bitcoin, 10x leverage, $500 position.
This time Bitcoin falls 4%. Your position loses $20 (−40% on your margin). Before fees and funding, $50 − $20 = $30 remains.
With cross margin, a position can draw on other collateral in the trading account. The amount selected for one trade is not necessarily a cap on the funds exposed to liquidation.
Liquidation
Liquidation is the forced closing of a position that no longer meets Hyperliquid's margin requirements.
Suppose you go long on Bitcoin at $100,000, using 50 USDC at 10× leverage, and that is all the collateral in your account. The position is worth $500. A 10% drop would produce a $50 price loss, consuming the initial margin before costs. Liquidation can happen earlier because the exchange requires maintenance margin.
Check the app's estimated liquidation price rather than treating a 10% move as a fixed threshold. Fees, funding, margin mode, and other collateral affect it. Extra collateral can move liquidation further away while exposing more funds to the position's losses.
Funding
Funding is a recurring payment between long and short holders that helps align a perpetual's price with its underlying market. Hyperliquid settles it hourly. Depending on the rate and your position, you pay or receive it. Funding can accumulate while a position remains open.
Fees
You pay fees when you open and when you close. There are two parts:
- Hyperliquid's exchange fee: the standard rate every trade on the exchange pays.
- The Bloxwap builder fee: a flat 5 bps (0.05%) of your trade, or 2.5 bps for Genesis traders.
Subtract trading fees and add any funding received, or subtract funding paid, to move from gross to net P&L. See the full fee breakdown.
FAQ
Is only the margin I selected at risk? With cross margin, other collateral in the trading account can also support the position and be exposed to losses.
What's the difference between gross and net? Gross is your raw price gain or loss. Net accounts for trading fees and funding paid or received.
When does my balance change? Fees apply when orders fill, and funding payments occur while positions are open. Closing or liquidation realizes the position's price gain or loss.
Practice the flow in Demo with virtual funds before trading live. If the terminology is new, start with the guide to perpetual futures. Leverage magnifies losses as well as gains.