# Wins and losses

Source: https://docs.testnet.mog.xyz/account/wins-and-losses/

Markdown: https://docs.testnet.mog.xyz/account/wins-and-losses.md

Reviewed protocol version: 11.0.0

Protocol review date: 2026-10-30

Scope: reviewed public documentation. Numerical examples use illustrative or launch settings; they are not live quotes or a guarantee of current deployed parameters. Consult the app for current market and position values.

A winning close returns your collateral and settles your profit after fees. A losing close deducts the loss from your collateral and returns the rest.

## A winning position

When the treasury covers your payout, net profit is available as cash at settlement. Your remaining cash margin returns to your balance.

Where your profit goes

Is the payout fully funded?

- Yes: Profit is available as cash.
- Partly or not yet: Cash pays first; only the rest queues.

A profitable close settles through the [close curve](https://docs.testnet.mog.xyz/trading/pnl-and-closing/), before [fees](https://docs.testnet.mog.xyz/trading/fees/): at launch just under 95% of a large move, and less of a small one. A [take-profit or stop-loss](https://docs.testnet.mog.xyz/trading/take-profit/) is a close and uses the same curve. Governance can change the curve for future positions; each position keeps the terms set when it filled.

## A losing position

The loss comes out of the position's margin. Your remaining cash margin returns to your balance. Liquidation uses all active margin, including added margin that has activated.

Every settled position earns [MOG](https://docs.testnet.mog.xyz/mog/earning-mog/) on its trading edge. A losing close earns MOG only on its open fee.

Each position keeps the close curve it filled with.