$ While in the "work scenario" you liquidate the portfolio at $t_1$ realising its PnL (let me simplify the notation a little bit) $begingroup$ Assuming that you will be Functioning for the lender, there are actually 3 diverse P&Ls based on the perform/ utilization: Comparing P&L Statements It is crucial https://www.youtube.com/watch?v=qMmsQ4kKgY4