diff --git a/lib/drift/orders.ts b/lib/drift/orders.ts
index 83a00e5..b9041fd 100644
--- a/lib/drift/orders.ts
+++ b/lib/drift/orders.ts
@@ -14,6 +14,7 @@ import {
   OrderType,
   OrderParams,
   OrderTriggerCondition,
+  LogParser,
 } from '@drift-labs/sdk'
 
 export interface OpenPositionParams {
@@ -78,6 +79,67 @@ export interface PlaceExitOrdersOptions {
   hardStopPrice?: number // Hard stop trigger price (TRIGGER_MARKET)
 }
 
+/**
+ * Extract actual fill price from transaction logs using LogParser
+ * This provides accurate P&L calculation instead of oracle price (Jan 2026 fix)
+ * 
+ * @param connection - Solana connection
+ * @param driftClient - Drift client with program reference
+ * @param txSig - Transaction signature to parse
+ * @returns Actual fill price or null if not found
+ */
+async function getActualFillPriceFromTx(
+  connection: any,
+  driftClient: any,
+  txSig: string
+): Promise<{ fillPrice: number; baseAmount: number; quoteAmount: number } | null> {
+  try {
+    // Fetch the full transaction
+    const tx = await connection.getTransaction(txSig, {
+      commitment: 'confirmed',
+      maxSupportedTransactionVersion: 0
+    })
+    
+    if (!tx) {
+      console.warn('⚠️ Could not fetch transaction for fill price extraction')
+      return null
+    }
+    
+    // Parse events from transaction logs
+    const logParser = new LogParser(driftClient.program)
+    const events = logParser.parseEventsFromTransaction(tx)
+    
+    // Look for OrderActionRecord events (fill events)
+    // Note: WrappedEvent structure has the data properties directly on the event object
+    for (const event of events) {
+      if (event.eventType === 'OrderActionRecord') {
+        const record = event as any  // Cast to access OrderActionRecord properties
+        
+        // Check if this is a fill event with amounts
+        if (record.baseAssetAmountFilled && record.quoteAssetAmountFilled) {
+          const baseAmount = Number(record.baseAssetAmountFilled.toString()) / 1e9  // 9 decimals
+          const quoteAmount = Number(record.quoteAssetAmountFilled.toString()) / 1e6  // 6 decimals
+          
+          if (baseAmount > 0) {
+            const fillPrice = quoteAmount / baseAmount
+            console.log(`📊 Actual fill data from tx logs:`)
+            console.log(`   Base filled: ${baseAmount.toFixed(6)} tokens`)
+            console.log(`   Quote filled: $${quoteAmount.toFixed(2)}`)
+            console.log(`   Fill price: $${fillPrice.toFixed(4)}`)
+            return { fillPrice, baseAmount, quoteAmount }
+          }
+        }
+      }
+    }
+    
+    console.warn('⚠️ No OrderActionRecord with fill amounts found in transaction')
+    return null
+  } catch (error: any) {
+    console.error('❌ Error extracting fill price from tx:', error.message)
+    return null
+  }
+}
+
 /**
  * Open a position with a market order
  */
@@ -758,9 +820,35 @@ export async function closePosition(
       }
     }
     
-    // Calculate realized P&L with leverage
+    // CRITICAL FIX (Jan 2026): Get actual fill price from transaction logs instead of oracle price
+    // This fixes P&L discrepancy where oracle price differs from actual execution price
+    let exitPrice = oraclePrice // Fallback to oracle price
+    let actualFillData: { fillPrice: number; baseAmount: number; quoteAmount: number } | null = null
+    
+    if (!confirmationTimedOut) {
+      try {
+        const connection = driftService.getConnection()
+        actualFillData = await getActualFillPriceFromTx(connection, driftClient, txSig)
+        
+        if (actualFillData) {
+          exitPrice = actualFillData.fillPrice
+          console.log(`✅ Using ACTUAL fill price: $${exitPrice.toFixed(4)} (oracle was: $${oraclePrice.toFixed(4)})`)
+          const priceDiff = ((exitPrice - oraclePrice) / oraclePrice) * 100
+          console.log(`   Price difference: ${priceDiff.toFixed(4)}% ${priceDiff > 0 ? '(better than oracle)' : '(worse than oracle)'}`)
+        } else {
+          console.warn(`⚠️ Could not extract fill price from tx, using oracle price: $${oraclePrice.toFixed(4)}`)
+        }
+      } catch (fillPriceError: any) {
+        console.error('❌ Error getting fill price from tx:', fillPriceError.message)
+        console.warn(`   Falling back to oracle price: $${oraclePrice.toFixed(4)}`)
+      }
+    } else {
+      console.warn('⚠️ Confirmation timed out, using oracle price for P&L estimation')
+    }
+    
+    // Calculate realized P&L with leverage using actual exit price
     // 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 profitPercent = ((exitPrice - position.entryPrice) / position.entryPrice) * 100 * (position.side === 'long' ? 1 : -1)
     
     // Get leverage from user account (defaults to 10x if not found)
     let leverage = 10
@@ -774,13 +862,13 @@ export async function closePosition(
       logger.log('⚠️ Could not determine leverage from account, using 10x default')
     }
     
-    // Calculate closed notional value (USD)
-    const closedNotional = sizeToClose * oraclePrice
+    // Calculate closed notional value (USD) - using exitPrice (actual fill or oracle fallback)
+    const closedNotional = sizeToClose * exitPrice
     const realizedPnL = (closedNotional * profitPercent) / 100
     const accountPnLPercent = profitPercent * leverage
     
     logger.log(`💰 Close details:`)
-    logger.log(`   Close price: $${oraclePrice.toFixed(4)}`)
+    logger.log(`   Exit price: $${exitPrice.toFixed(4)}${actualFillData ? ' (from tx fill)' : ' (oracle fallback)'}`)
     logger.log(`   Profit %: ${profitPercent.toFixed(3)}% | Account P&L (${leverage}x): ${accountPnLPercent.toFixed(2)}%`)
     logger.log(`   Closed notional: $${closedNotional.toFixed(2)}`)
     logger.log(`   Realized P&L: $${realizedPnL.toFixed(2)}`)
@@ -811,7 +899,7 @@ export async function closePosition(
           return {
             success: true,
             transactionSignature: txSig,
-            closePrice: oraclePrice,
+            closePrice: exitPrice,  // Use actual fill price (or oracle fallback)
             closedSize: sizeToClose,
             realizedPnL,
             needsVerification: true, // Flag for Position Manager
@@ -828,7 +916,7 @@ export async function closePosition(
     return {
       success: true,
       transactionSignature: txSig,
-      closePrice: oraclePrice,
+      closePrice: exitPrice,  // Use actual fill price (or oracle fallback)
       closedSize: sizeToClose,
       realizedPnL,
       needsVerification: confirmationTimedOut, // Keep monitoring if confirmation never arrived