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Portfolio Screen Metrics

Luca avatar
Written by Luca
Updated over 3 weeks ago

Overview

This article explains the metrics shown on the portfolio screen in the Relai app, how they are calculated, and what they represent. Each section below includes formulas, examples, and clarifications to avoid ambiguity.

Glossary of Key Terms

  • BTC: Bitcoin

  • Fiat: Traditional government-issued currency like CHF, EUR, USD

  • PnL: Profit and Loss

  • WAC: Weighted Average Cost

  • Realized PnL: Profit/loss from BTC already sold

  • Unrealized PnL: Potential profit/loss from BTC still held


Portfolio Value

Definition:
The net amount of bitcoin (BTC) you've invested in, calculated as the difference between all BTC you have ever bought and all BTC you have ever sold. This value is representative of your BTC investment activity, not necessarily the BTC currently held in your Relai wallet.

Formula:
Portfolio Value = Total BTC Bought − Total BTC Sold

Note: This metric is a representative value of your bitcoin investment activity -not your actual wallet balance. For example, if you’ve sent or received bitcoin using your self-custodial wallet, the portfolio value may differ from the actual amount currently held in your wallet.

Special Case Handling:

If more BTC has been sold than purchased, the value can become negative.

To avoid confusion, we set the value to zero in such cases.


Portfolio Fiat Value

Definition:
The current value of your bitcoin investment in fiat currency.

Formula:
Fiat Value = Portfolio BTC Value × Current BTC Price

Average Cost per BTC

Definition:
The average price you paid per bitcoin across all your past purchases.

Formula:
Average Cost = Total Fiat Spent on Buys / Total BTC Bought

Note:
This is not the weighted average cost (WAC) of your currently held BTC. It is based on all purchases, regardless of whether the BTC was later sold.


Realized Profit and Loss (PnL)

Definition:
Profit or loss made from bitcoin you have sold.

Methodology:

  • Relai uses the weighted average cost (WAC) method to track cost basis.

  • After each buy, WAC is recalculated.

  • After each sell, the realized PnL is calculated based on the WAC at that time.

Formula:
Realized PnL = (Sell Price × BTC Sold) − (WAC at Time of Sale × BTC Sold)

Example Walkthrough:

Buy 1 BTC @ 30,000 CHF → WAC = 30,000 CHF

Buy 1 BTC @ 50,000 CHF → WAC = (30K + 50K) / 2 = 40,000 CHF

Sell 1 BTC @ 55,000 CHF → Realized PnL = 15,000 CHF

Sell 0.5 BTC @ 60,000 CHF → Realized PnL = 10,000 CHF

Buy 1 BTC @ 40,000 CHF → WAC = (20K + 40K) / 1.5 = 40,000 CHF

Sell 0.5 BTC @ 70,000 CHF → Realized PnL = 15,000 CHF


Unrealized Profit and Loss (PnL)

Definition:
The theoretical profit or loss of your currently held BTC based on current market price.

Formula:
Unrealized PnL = BTC Held × (Current Market Price − WAC of currently held BTC)

Total Profit and Loss (PnL)

Definition:
Sum of your realized and unrealized profits and losses.

Formula:
Total PnL = Realized PnL + Unrealized PnL
Percentage PnL = (Total PnL / Total Invested) × 100

Total Invested

Definition:
The total amount of fiat currency you spent buying bitcoin.

Formula:
Total Invested = Σ Fiat Spent on BTC Buys

Note:
This value is not reduced by BTC sales. It reflects the gross amount of fiat spent.


Need Help?

If you have questions or need assistance, contact the Relai Support team:

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