From bba2876fb74c53748cd742b3eff2e547b64909d6 Mon Sep 17 00:00:00 2001
From: mindesbunister <github_service@egonetix.de>
Date: Sun, 2 Nov 2025 20:43:37 +0100
Subject: [PATCH] fix(drift): calculate realizedPnL with leverage on USD
 notional, not base asset

- Old calculation: (closePrice - entryPrice) * sizeInBaseAsset = tiny P&L in dollars
- New calculation: profitPercent * leverage * notionalUSD / 100 = correct leveraged P&L
- Example: -0.13% price move * 10x leverage * $540 notional = -$7.02 (not -$0.38)
- Fixes trades showing -$0.10 to -$0.77 losses when they should be -$5 to -$40
- Applied to both DRY_RUN and real execution paths
---
 lib/drift/orders.ts | 23 +++++++++++++++++------
 1 file changed, 17 insertions(+), 6 deletions(-)

diff --git a/lib/drift/orders.ts b/lib/drift/orders.ts
index 396721b..47a593b 100644
--- a/lib/drift/orders.ts
+++ b/lib/drift/orders.ts
@@ -486,9 +486,12 @@ export async function closePosition(
     if (isDryRun) {
       console.log('🧪 DRY RUN MODE: Simulating close order (not executing on blockchain)')
       
-      // Calculate realized P&L
-      const pnlPerUnit = oraclePrice - position.entryPrice
-      const realizedPnL = pnlPerUnit * sizeToClose * (position.side === 'long' ? 1 : -1)
+      // Calculate realized P&L with leverage
+      const profitPercent = ((oraclePrice - position.entryPrice) / position.entryPrice) * 100 * (position.side === 'long' ? 1 : -1)
+      const leverage = position.leverage || 10
+      const accountPnLPercent = profitPercent * leverage
+      const closedNotional = sizeToClose * oraclePrice
+      const realizedPnL = (closedNotional * accountPnLPercent) / 100
       
       const mockTxSig = `DRY_RUN_CLOSE_${Date.now()}_${Math.random().toString(36).substring(7)}`
       
@@ -534,12 +537,20 @@ export async function closePosition(
     
     console.log('✅ Transaction confirmed on-chain')
     
-    // Calculate realized P&L
-    const pnlPerUnit = oraclePrice - position.entryPrice
-    const realizedPnL = pnlPerUnit * sizeToClose * (position.side === 'long' ? 1 : -1)
+    // Calculate realized P&L with leverage
+    // CRITICAL: P&L must account for leverage and be calculated on USD notional, not base asset size
+    const profitPercent = ((oraclePrice - position.entryPrice) / position.entryPrice) * 100 * (position.side === 'long' ? 1 : -1)
+    const leverage = position.leverage || 10 // Fallback to 10x if not available
+    const accountPnLPercent = profitPercent * leverage
+    
+    // Calculate closed notional value (USD)
+    const closedNotional = sizeToClose * oraclePrice
+    const realizedPnL = (closedNotional * accountPnLPercent) / 100
     
     console.log(`💰 Close details:`)
     console.log(`   Close price: $${oraclePrice.toFixed(4)}`)
+    console.log(`   Profit %: ${profitPercent.toFixed(3)}% | Account P&L (${leverage}x): ${accountPnLPercent.toFixed(2)}%`)
+    console.log(`   Closed notional: $${closedNotional.toFixed(2)}`)
     console.log(`   Realized P&L: $${realizedPnL.toFixed(2)}`)
     
     // If closing 100%, cancel all remaining orders for this market