Raising leverage from 10x to 50x took the same BTC trade from 48.52% to 237.49% ROI and the profit stayed 400 USDT. BYDFi's USDT-M P&L math, step by step

A lot of traders believe higher leverage makes a trade earn more. BYDFi's help article on USDT-M P&L shows with one position why that's wrong: the profit in USDT never moves, only the percentage does, because you put up less margin.

The image is the official art from that BYDFi Help Center article: a green up arrow, a red zigzag down arrow and falling coins next to the BYDFi mascot. No prices in it.

Step 1: average entry when you add to a position

FIBO (BYDFi's example trader) buys 0.1 BTCUSDT at 40,000, then another 0.1 at 42,000.

• total contract value = (0.1 x 40,000) + (0.1 x 42,000) = 8,200
• quantity = 0.2 BTC
• average entry = 8,200 / 0.2 = 41,000

Step 2: unrealized P&L

• Long: quantity x (mark price - entry). 0.2 x (43,000 - 41,000) = 400 USDT
• Short: quantity x (entry - mark price). 0.4 x (40,000 - 39,000) = 400 USDT

Settled in USDT, unlike COIN-M where it is paid in the coin. It is shown off the last price by default; hover the number to see it at mark price. It leaves out trading fees and funding.

Step 3: unrealized P&L % (this is where leverage shows up)

uPnL% = uPnL / position margin, where position margin = initial margin + closing fee.

For the 0.2 BTC long at 41,000 with 10x:

• initial margin = (0.2 x 41,000) / 10 = 820 USDT
• closing fee = bankruptcy price x quantity x 0.06% = 36,877.86 x 0.2 x 0.06% = 4.4253 USDT
• uPnL% = 400 / (820 + 4.4253) = 48.52%

Same trade at other leverage, per BYDFi:

• 5x: 400 USDT, 24.32%
• 10x: 400 USDT, 48.52%
• 50x: 400 USDT, 237.49%

The 400 doesn't change. A higher percentage just means less margin behind the same position, which also means a liquidation price closer to your entry. In cross margin, BYDFi computes this margin from the max leverage for the pair (BTCUSDT 125x), so the % there can look extreme.

Step 4: closed P&L is where the fees land

Closed P&L = position P&L - opening fee - closing fee - funding paid (or + received).

BYDFi's short example: 0.4 BTC short from 40,000, closed at market at 39,000, opened with a market order, 4.20 USDT funding paid.

• position P&L: 400
• opening fee: 0.4 x 40,000 x 0.06% = 9.60
• closing fee: 0.4 x 39,000 x 0.06% = 9.36
• closed P&L = 400 - 9.60 - 9.36 - 4.20 = 376.84 USDT

So the 400 on the screen became 376.84 in the account. Unrealized P&L ignores fees and funding; closed P&L includes them. On a partial close, fees and funding are split in proportion to the share you closed.

What leverage really changes: how much margin you lock up and how close liquidation sits. Your profit comes from position size and how far price moves.