The PnL Index

The PnL Index is derived directly from the performance of an internal trading fund, which has a fixed baseline of $10,000. The matching 1:1 mechanism means each point change in the PnL Index corresponds exactly to a 1% profit or loss calculated based on this fixed baseline amount of $10,000, rather than on the cumulative value of the fund.

Example:

• Step 1 (Initial): The PNL Index starts at 100, corresponding to the initial baseline value of $10,000 for the internal fund.

• Step 2 (When the fund gains profit): After some periods, the fund achieves a profit of $1,200, equivalent to 12% based on the original baseline of $10,000. → The PnL Index thus increases by exactly 12 points, from 100 to 112.

• Step 3 (When the fund incurs a loss): Suppose after this profitable period, the fund experiences a loss of $700, equivalent to 7%, still calculated against the original baseline of $10,000. → The PnL Index then decreases by exactly 7 points, from 112 down to 105.

In this way, the PNL Index always moves in direct proportion to percentage gains or losses based on the fixed $10,000 baseline. This transparent mechanism allows investors to easily monitor and calculate the fund’s real-time performance and clearly understand their investment outcomes.