How we calculate ROI in the WSOC tournament

To make sure the process of calculating ROI - based on which the winners will be determined - is fully understandable and transparent, we'll go through a step by step example.

Step 1. Calculating results for a deal in the dBTC/dUSD pair.

Let’s assume we bought 10 dBTC at a rate of 10,900 dUSD for one dBTC. The total value of the deal is therefore 109,000 dUSD. The indicator AssetDelta equals 10 dBTC and MarketDelta equals -109,000.

Now we need to calculate the value at the current market rate. At the time of calculation, the dBTC/dUSD exchange rate is 11,300. Therefore, the current market value will equal 10*11,300 =113,000 dUSD.

The profit on this deal before the deduction of trading fees is calculated using this formula: MarketDelta + current market cost.

So, -109,000 dUSD + 113,000 dUSD = 4,000 dUSD.

Then we do the same calculations for the other currency pairs.

Step 2. Calculating results for a dETH/dBTC deal.

We bought 10 dETH and paid 0.2821 dBTC.

AssetDelta equals 10 dETH, and MarketDelta equals -0.2821 dBTC.

Now we calculate the deal’s value based on the current market rate. The cost equals 10*0.027581 = 0.2758114 dBTC. Since the final results will be calculated in dUSD, we’ll convert at an average dBTC/dUSD exchange rate of 11,300. The result is –71.0612 dUSD.

Step 3. Calculating results for a dETH/dUSD sale deal.

We sold 10 dETH and received 3,085.4 dUSD. The current market cost equals 10*312.3 = - 3,123 dUSD. The deal’s value equals – 37.6 dUSD.

Step 4. Calculating final ROI.

We have results for three deals. Now, we add them and subtract trading fees.

ROI = 4,000 + (-71.0612) + (-37.6) – 0.02115 (trading fee) = 3,891.32 dUSD.

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Please note that for correct calculation of deal results, starting balances in dBTC and dETH have to be accounted for as dUSD buy deals. Results for those deals, just like all others, are calculated on the basis of market rates.