diff --git a/tests/integration/test_paper_book.py b/tests/integration/test_paper_book.py
index 124df1e..3e2e158 100644
--- a/tests/integration/test_paper_book.py
+++ b/tests/integration/test_paper_book.py
@@ -47,33 +47,38 @@ def test_derive_and_persist_is_idempotent_per_run_date():
 
 
 def test_realized_pnl_on_full_exit():
+    # Compounding MTM model: the FULL held-book gain (not just a realized sliver) flows into the nav curve,
+    # so equity reflects it even after a full exit to cash.
     repo = PaperRepo("sqlite://")
     repo.migrate()
-    svc = PaperBookService(repo, capital=100_000.0)
-    # day 1: long BTC, full notional 100k at price 100 -> qty 1000
-    _derive(svc, "2026-06-21", 1.0, {"BTC": 100.0}, "2026-06-21")
-    # day 2: fully exit (weight 0) at price 110 -> realized = 1000 * (110-100) = 10_000
-    _derive(svc, "2026-06-22", 0.0, {"BTC": 110.0}, "2026-06-22")
-    view = svc.view(live=FakeLivePrice({}))            # no open positions
+    at = dt.datetime(2026, 6, 22, tzinfo=dt.UTC)
+    # day 1: long BTC full 100k at 100 -> qty 1000 (sized off equity = capital)
+    persist_paper_book(repo, capital=100_000.0, run_date="2026-06-21", sleeve_weights={"s": 1.0},
+                       symbol_weights_by_sleeve={"s": {"BTC": 1.0}}, prices={"BTC": 100.0}, at=at)
+    # day 2: fully exit (sleeve weight 0) at 110 -> prior book marked: gain 1000*(110-100)=10_000 -> equity 110k, flat
+    persist_paper_book(repo, capital=100_000.0, run_date="2026-06-22", sleeve_weights={"s": 0.0},
+                       symbol_weights_by_sleeve={"s": {"BTC": 1.0}}, prices={"BTC": 110.0}, at=at)
+    view = PaperBookService(repo, capital=100_000.0).view(live=FakeLivePrice({}))   # no open positions
     assert not view.positions
-    assert view.equity == 110_000.0                    # capital + realized 10k, even with no open book
+    assert view.equity == pytest.approx(110_000.0)     # full book gain captured by the compounding nav curve
 
 
 def test_realized_pnl_on_partial_reduction():
+    # Compounding MTM model: holding the full book into the up-day captures the whole gain in the nav curve;
+    # the reduction still records a realized sliver (now display-only, not the equity driver).
     repo = PaperRepo("sqlite://")
     repo.migrate()
-    svc = PaperBookService(repo, capital=100_000.0)
+    at = dt.datetime(2026, 6, 22, tzinfo=dt.UTC)
     # day 1: long BTC full 100k at 100 -> qty 1000
-    _derive(svc, "2026-06-21", 1.0, {"BTC": 100.0}, "2026-06-21")
-    # day 2: reduce to half weight at price 110. target notional 50k / 110 = ~454.5 qty.
-    # realized on the reduced (sold) qty = (1000 - 454.5...) * (110 - 100)
-    _derive(svc, "2026-06-22", 0.5, {"BTC": 110.0}, "2026-06-22")
-    closed = 1000.0 - (0.5 * 100_000.0 / 110.0)
-    expected_realized = closed * (110.0 - 100.0)
-    assert repo.realized_pnl() == pytest.approx(expected_realized)
-    view = svc.view(live=FakeLivePrice({"BTC": 110.0}))
-    # equity = capital + realized + unrealized(0 since last==entry on the surviving lot)
-    assert view.equity == pytest.approx(100_000.0 + expected_realized)
+    persist_paper_book(repo, capital=100_000.0, run_date="2026-06-21", sleeve_weights={"s": 1.0},
+                       symbol_weights_by_sleeve={"s": {"BTC": 1.0}}, prices={"BTC": 100.0}, at=at)
+    # day 2: reduce to half sleeve weight at 110 -> prior full book (qty 1000) marked: gain 1000*(110-100)=10_000
+    persist_paper_book(repo, capital=100_000.0, run_date="2026-06-22", sleeve_weights={"s": 0.5},
+                       symbol_weights_by_sleeve={"s": {"BTC": 1.0}}, prices={"BTC": 110.0}, at=at)
+    assert repo.realized_pnl() > 0.0                    # reduction still records a realized sliver (display-only)
+    view = PaperBookService(repo, capital=100_000.0).view(live=FakeLivePrice({"BTC": 110.0}))
+    # equity = compounding nav curve (110k, full book gain) + intraday (0: surviving lot entry=110, marked @110)
+    assert view.equity == pytest.approx(110_000.0)
 
 
 def test_persist_paper_book_writes_nav():