What does the trade actually cost?

METHOD / VERSION 1.0

Know what the model includes.

Let N be entry notional, r the gross price change, b and s the combined fee plus slippage rates on each side, and F₁ / F₂ the fixed entry / exit costs. Percentage inputs are divided by 100 in these formulas.

Entry outlay

N × (1 + b) + F₁

Net exit proceeds

N × (1 + r) × (1 − s) − F₂

Net profit / loss

Exit proceeds − entry outlay

Break-even price change

(entry outlay + F₂) ÷ [N × (1 − s)] − 1

This simplified cash-cost model keeps token quantity constant and treats slippage as an additive percentage cost. It is not a simulation of an order book or an exchange’s fee deduction rules. Slippage here is an assumed realized cost, not the maximum tolerance in a trading interface. Fees charged in tokens, minimum fees and fee tiers may produce different outcomes.

It excludes taxes, borrowing, funding, leverage, liquidity limits and changes in fixed costs. A break-even result is arithmetic, not a predicted return. At a 100% token-price loss, fixed costs may make the modeled loss larger than entry outlay. Outputs use unrounded arithmetic and are rounded only for display.