Profits-and-Losses (also referred to as P&L) are currently always calculated in Bitcoin or Tether and can either be realized or unrealized.
Unrealized profits-and-losses are gains and losses that exist on “paper”, but have yet to be converted into cash/cryptocurrency.
On BLADE, unrealized P&L takes two forms: unrealized P&L from marking-to-market and unrealized P&L from basis payments. Unrealized P&L from marking-to-market becomes realized once a position is closed or reduced. Unrealized P&L from basis payments becomes realized at daily settlement.
Realized profits-and-losses are gains and losses from completed transactions that have been converted into cash/cryptocurrency.
On BLADE, P&L becomes realized when positions are closed or reduced, basis payments are settled and trading fees/rebates are paid/received.