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guide · Cairn research education

Why a flat stock price can still produce a loss

Entry fees, execution costs and financing claims can change the result even when the underlying price is unchanged.

·Reference model only
Deposit to Fees + match to Reference resultDepositsynthetic modelFees + matchshow assumptionsReference resultnot a guarantee

For a fresh $1,000 SPYx Boost example, the 0.10% entry fee leaves $999 of junior capital and $499.50 of matched senior financing. At a flat price, the reference junior claim is therefore $999 rather than $1,000.

A full simulated cash exit can also charge the stated 0.30% cost on collateral sold. That is a model assumption, not a live quote. Reproduce the flat case in the calculator and inspect the cash-exit disclosure in Portfolio.