> For the complete documentation index, see [llms.txt](https://docs.symm.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.symm.io/liquidity-provider-documentation/core-concepts/settlement-and-profit-realization.md). # Settlement and Profit Realization On SYMMIO there’s a distinction between unrealized PnL (what a position is worth on paper) and allocated balance (real funds you can use to pay losses or withdraw). Settlement is the mechanism that lets you turn some of that unrealized profit into real, spendable balance so the system can keep functioning smoothly. A classic situation looks like this: a trader has several winning positions with you, plus one losing position they want to close. On paper they’re in profit overall, but their allocated balance is too low to pay for the loss on the closing trade. If you try to close it directly, the protocol blocks the operation because Party A doesn’t have enough realized collateral. From your point of view, you know they’re good for it—their winners cover the loss—but the contract only sees that their allocated balance is short. That’s where you, as Party B, would invoke a [settlement](/trader-documentation/how-trading-works-in-symmio/settlement.md). From a risk point of view, settlement is one of your main tools to avoid “good” traders getting stuck. If you never settle, you’ll eventually run into cases where a profitable account can’t close a losing leg because their realized balance is too low. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.symm.io/liquidity-provider-documentation/core-concepts/settlement-and-profit-realization.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.