On Kyan, equity represents the total value of your portfolio at any given time. It is the key metric that determines the health of your account and your ability to maintain or expand your positions.
How to Calculate Equity
The calculation is simple:
Equity = Cash Balance + Unrealized Profit and Loss (PnL)
Cash Balance is the USDC you have deposited into your portfolio.
Unrealized PnL comes from your open positions. If your positions are profitable, equity rises. If they are losing value, equity decreases.
Example
You deposit 10,000 USDC into your BTC portfolio. Next, you open a BTC perp position.
If your position is showing +1,500 USDC profit, your equity becomes 11,500 USDC.
If your position is showing –2,000 USDC loss, your equity becomes 8,000 USDC.
The Importance of Equity
Equity is dynamic. It changes in real time with market movements, unlike your initial deposit, which is fixed until you add or withdraw funds.
Why is this important? Because the risk engine uses your equity to check whether your account satisfies Initial Margin and Maintenance Margin requirements. If your equity is too low relative to your risk, the system will restrict new trades or trigger liquidation.