From ed7ffa8f13d8d4209357916e42e487977d32c81f Mon Sep 17 00:00:00 2001
From: Cosmic Vagabond <121588426+cosmic-vagabond@users.noreply.github.com>
Date: Fri, 4 Oct 2024 15:45:25 +0200
Subject: [PATCH] fix(perpetual): update pnl formulas

---
 x/perpetual/keeper/query_open_estimation.go   | 23 ++++++++++++++-----
 .../keeper/query_open_estimation_test.go      | 14 +++++------
 2 files changed, 24 insertions(+), 13 deletions(-)

diff --git a/x/perpetual/keeper/query_open_estimation.go b/x/perpetual/keeper/query_open_estimation.go
index 401f8edc..d549c85f 100644
--- a/x/perpetual/keeper/query_open_estimation.go
+++ b/x/perpetual/keeper/query_open_estimation.go
@@ -79,16 +79,27 @@ func (k Keeper) OpenEstimation(goCtx context.Context, req *types.QueryOpenEstima
 		req.TakeProfitPrice = sdk.MustNewDecFromStr(types.TakeProfitPriceDefault)
 	}
 
+	// calculate liabilities amount
+	liabilitiesAmountDec := sdk.NewDecFromBigInt(collateralAmountInBaseCurrency.Amount.BigInt()).Mul(req.Leverage.Sub(sdk.OneDec()))
+
 	// calculate estimated pnl
-	// estimated_pnl = (current_price - entry_price) * custody_amount
-	estimatedPnL := req.TakeProfitPrice.Sub(openPrice).Mul(sdk.NewDecFromBigInt(positionSize.Amount.BigInt()))
-	estimatedPnLDenom := req.TradingAsset
+	var estimatedPnL sdk.Dec
+	estimatedPnLDenom := baseCurrency
 
 	// if position is short then:
-	// estimated_pnl = (entry_price - current_price) * (custody_amount / open_price)
 	if req.Position == types.Position_SHORT {
-		estimatedPnL = openPrice.Sub(req.TakeProfitPrice).Mul(sdk.NewDecFromBigInt(positionSize.Amount.BigInt()).Quo(openPrice))
-		estimatedPnLDenom = baseCurrency
+		// estimated_pnl = custody_amount - liabilities_amount * take_profit_price - collateral_amount
+		estimatedPnL = sdk.NewDecFromBigInt(positionSize.Amount.BigInt()).Sub(liabilitiesAmountDec.Mul(req.TakeProfitPrice)).Sub(sdk.NewDecFromBigInt(req.Collateral.Amount.BigInt()))
+	} else {
+		// if position is long then:
+		// if collateral is not in base currency
+		if req.Collateral.Denom != baseCurrency {
+			// estimated_pnl = (custody_amount - collateral_amount) * take_profit_price - liabilities_amount
+			estimatedPnL = sdk.NewDecFromBigInt(positionSize.Amount.BigInt()).Sub(sdk.NewDecFromBigInt(req.Collateral.Amount.BigInt())).Mul(req.TakeProfitPrice).Sub(liabilitiesAmountDec)
+		} else {
+			// estimated_pnl = custody_amount * take_profit_price - liabilities_amount - collateral_amount
+			estimatedPnL = sdk.NewDecFromBigInt(positionSize.Amount.BigInt()).Mul(req.TakeProfitPrice).Sub(liabilitiesAmountDec).Sub(sdk.NewDecFromBigInt(req.Collateral.Amount.BigInt()))
+		}
 	}
 
 	// calculate liquidation price
diff --git a/x/perpetual/keeper/query_open_estimation_test.go b/x/perpetual/keeper/query_open_estimation_test.go
index bb4fabf6..8fc0d935 100644
--- a/x/perpetual/keeper/query_open_estimation_test.go
+++ b/x/perpetual/keeper/query_open_estimation_test.go
@@ -109,8 +109,8 @@ func TestOpenEstimation_Long5XAtom100Usdc(t *testing.T) {
 		TakeProfitPrice:    sdk.MustNewDecFromStr("20.00000000000000000"),
 		LiquidationPrice:   sdk.MustNewDecFromStr("0.799653976372211738"),
 		InterestAmount:     types.NewParams().MinBorrowInterestAmount,
-		EstimatedPnl:       sdk.NewInt(9_483_592265),
-		EstimatedPnlDenom:  ptypes.ATOM,
+		EstimatedPnl:       sdk.NewInt(9_482_728700),
+		EstimatedPnlDenom:  ptypes.BaseCurrency,
 		AvailableLiquidity: sdk.NewCoin(ptypes.ATOM, sdk.NewInt(600000000000)),
 		Slippage:           sdk.MustNewDecFromStr("0.000727856000000000"),
 		WeightBalanceRatio: sdk.MustNewDecFromStr("0.000000000000000000"),
@@ -225,8 +225,8 @@ func TestOpenEstimation_Long5XAtom10Atom(t *testing.T) {
 		OpenPrice:          sdk.MustNewDecFromStr("1.000000000000000000"),
 		TakeProfitPrice:    sdk.MustNewDecFromStr("20.00000000000000000"),
 		LiquidationPrice:   sdk.MustNewDecFromStr("0.799662359570370484"),
-		EstimatedPnl:       sdk.NewInt(947_320202),
-		EstimatedPnlDenom:  ptypes.ATOM,
+		EstimatedPnl:       sdk.NewInt(757_224656),
+		EstimatedPnlDenom:  ptypes.BaseCurrency,
 		InterestAmount:     types.NewParams().MinBorrowInterestAmount,
 		AvailableLiquidity: sdk.NewCoin(ptypes.ATOM, sdk.NewInt(10000000000)),
 		Slippage:           sdk.MustNewDecFromStr("0.000686040302239768"),
@@ -347,8 +347,8 @@ func TestOpenEstimation_Long10XAtom1000Usdc(t *testing.T) {
 		TakeProfitPrice:    sdk.MustNewDecFromStr("5.000000000000000000"),
 		LiquidationPrice:   sdk.MustNewDecFromStr("3.944975514993148154"),
 		InterestAmount:     types.NewParams().MinBorrowInterestAmount,
-		EstimatedPnl:       sdk.NewInt(1_370_711096),
-		EstimatedPnlDenom:  ptypes.ATOM,
+		EstimatedPnl:       sdk.NewInt(1_235_336860),
+		EstimatedPnlDenom:  ptypes.BaseCurrency,
 		AvailableLiquidity: sdk.NewCoin(ptypes.ATOM, sdk.NewInt(600_000_000000)),
 		Slippage:           sdk.MustNewDecFromStr("0.012549973525000000"),
 		WeightBalanceRatio: sdk.MustNewDecFromStr("0.000000000000000000"),
@@ -463,7 +463,7 @@ func TestOpenEstimation_Short5XAtom10Usdc(t *testing.T) {
 		OpenPrice:          sdk.MustNewDecFromStr("1.000000000000000000"),
 		TakeProfitPrice:    sdk.MustNewDecFromStr("2.000000000000000000"),
 		LiquidationPrice:   sdk.MustNewDecFromStr("1.200000000000000000"),
-		EstimatedPnl:       sdk.NewInt(-500000000),
+		EstimatedPnl:       sdk.NewInt(-400000000),
 		EstimatedPnlDenom:  ptypes.BaseCurrency,
 		InterestAmount:     types.NewParams().MinBorrowInterestAmount,
 		AvailableLiquidity: sdk.NewCoin(ptypes.ATOM, sdk.NewInt(10000000000)),