Last Updated: 2026-10-26
Scope: This is an offline worked example, not a reported trade or a suggestion to open one. Prices and fees below are synthetic. We checked public documentation, not a logged-in account. The site may earn affiliate commissions; leveraged contracts can lose capital quickly.
Start with units, not the leverage slider
Write down the exact contract, collateral currency, quantity unit, multiplier, margin mode, tick size and minimum size. A quantity field might mean coins or contracts. USDT collateral does not make account equity constant: open P&L, funding and collateral value still matter. Eligibility and custody belong in the venue assessment.
MEXC's calculation reference distinguishes linear and inverse P&L. Its displayed fee examples carry an older rate date, so they are not a current tariff. Use the actual contract specification and account charges when reconciling a real statement.
One coherent linear example
Assume a $500 account and a hypothetical BTC linear long of 0.01 BTC at $60,000, with 5× leverage. Notional is $600; simple initial margin is $120 before fee reserves and other requirements. The other $380 is not proof that it is insulated from losses: that depends on margin mode and settings.
Scroll sideways to see every column. Keyboard: focus the table region and use the arrow keys.
| Paper scenario | Gross calculation | Result before costs |
|---|---|---|
| Exit at $59,000 | 0.01 × (59,000 − 60,000) | −$10 |
| Exit at $62,000 | 0.01 × (62,000 − 60,000) | +$20 |
| Planned stop $59,000, actual fill $58,500 | 0.01 × (58,500 − 60,000) | −$15 |
The $10 planned loss is 8.33% of $120 margin and 2% of the $500 account. It is not a guaranteed maximum. For unchanged quantity, changing a leverage setting does not change price-move P&L it changes margin requirements and can affect liquidation risk.
Assume a synthetic 0.04% fee on each fill. Entry costs $600 × 0.0004 = $0.24. At the $59,000 exit, fee is $590 × 0.0004 = $0.236. With one additional hypothetical $0.06 funding payment, the net loss is $10.536. At the $62,000 exit, $0.248 exit fee gives $19.452 net gain with the same funding payment.
Funding needs settlement timestamps, not simply elapsed hours. Under an assumed 00:00/08:00/16:00 schedule, holding from 07:50 to 14:02 crosses one event, not two. Verify the actual market interval, rate, side and settlement notional. Negative funding can make a long a receiver; do not label every funding entry a cost.
Inverse contracts require a different denominator
For a hypothetical inverse contract with $1 face value, 600 long contracts entered at $60,000 and exited at $62,000 earn 600 × (1/60,000 − 1/62,000) = 0.0003225806 BTC before costs. At that exit price this is $20, but the collateral itself also changes dollar value. Do not paste a coin quantity into a dollar-face-value formula. Confirm the multiplier before using either equation.
Check failure states before treating a worksheet as execution
MEXC documents a calculator that estimates P&L and liquidation without opening a position. Its estimates are not executable quotes. We have not tested its authenticated UI. A liquidation estimate is not simply entry price minus 1/leverage: maintenance requirements, fees, collateral and other positions matter.
In an offline worksheet or an explicitly available simulation, record these states: rejected order, partial fill, canceled remainder, triggered but unfilled exit, and a stale connection. Reconcile order IDs and fills before retrying; a timeout does not prove an order failed. Distinguish a limit order from post-only, and a trigger price from the eventual fill. Stops and isolated-margin labels do not establish an unconditional loss cap.
End the exercise with a ledger: starting equity, transfers, fill P&L, each fee and funding entry, open positions, and ending equity. If the quantities or money do not reconcile, correct the worksheet before drawing a performance conclusion. Simulated fills still do not reproduce a live queue, outages or liquidation.