# Profit & Loss

## Profit and Loss (P\&L) Dynamics: <a href="#profit-and-loss-p-and-l-dynamics" id="profit-and-loss-p-and-l-dynamics"></a>

It is essential to note that pool earnings and losses (index token appreciation/depreciation) are not factored in the overall yield calculation.

Traders' P\&L from perpetual trading impacts the JLP pool. If a trader incurs a net positive P\&L, the losses are sourced from the JLP pool to compensate the trader. Conversely, if a trader's P\&L is net negative, the gains are deposited into the JLP pool for LP holders.


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