Papertrade.xyz: 1000x Hyperliquid Perps, PAPER Token, Fees

What is Papertrade.xyz and how does a trade settle?

Papertrade.xyz is a BTC and ETH perps exchange on HyperEVM where every trade settles against one house pool at Hyperliquid’s price. There’s no orderbook. When you open, the contract reads Hyperliquid’s BBO mid (halfway between the best buy and best sell order) and locks it as your entry. When you close, it reads the mid again and settles the difference against the house pool, the single pot that takes the other side of every trade.

So there’s no funding, spread or slippage. The catch is the pool. It started at zero, grows only from traders’ losses, and pays the winners. If it can’t cover a win, your margin still comes back, but the profit waits in a FIFO payout queue (first in, first out: the oldest unpaid wins get paid first as new losses arrive).

The pool is kept small on purpose. Anything above the staker reward cap is swept out to PAPER stakers. As of 11 October 2026 that cap is $5M, and it rises to $10M shortly after 18:45 UTC on Saturday 17 October.

Papertrade minimum position, leverage and liquidation

Every position needs at least $10 of margin and $10,000 of notional, so your margin sets your leverage. Put $10 in and you’re at 1000x whether you meant to be or not.

Margin is isolated per trade. Liquidation fires about 0.048% of price before your margin hits zero, and it takes the whole margin. So 1000x gives you roughly 0.05% of room, not 0.1%.

That 0.05% is ordinary BTC noise, so at 1000x you’re betting on the next few ticks. The table is approximate. Read the liquidation price in the trade panel and settle your margin before you confirm, every time. The team started tightening exposure limits on 11 October, so the minimums may move too.

Papertrade fees: the haircut and the 2% win fee

Opening is free and losing closes pay nothing extra. A winning close goes through three steps:

1. Deadband. The first 0.002% of the move counts for nothing.
2. Haircut, the cut taken from wins before the fee. The rest of the profit is scaled down on a curve set by how far price moved, not by your size. Small moves lose a bigger share, and you never keep more than 90% of the raw profit.
3. Win fee. 2% of what’s left.

The full curve is in Papertrade’s docs. Here’s one trade: $100 margin at 100x on BTC ($10,000 notional), which liquidates about 0.95% against you.

The small win keeps about 80% of its raw profit and the 2% win about 87%. ETH uses a slightly harsher setting of the same curve, so the same move keeps a bit less there.

PAPER token: no airdrop, minted only from losses

There is no Papertrade airdrop, no pre-mint and no team or VC allocation. It’s loss mining: the only way to get PAPER is to close at a loss or get liquidated. While the tracked pool is under $2M the rate is a flat 100 PAPER per $1 of loss basis, which is 98% of the loss on a normal close and the full margin on a liquidation. The pool passed $2M in the first hour of trading, and the rate has been decaying as it grows since then. It goes back to 100 if a winning streak drains the tracked pool under $2M again.

You can’t sell or transfer PAPER yet. Transfers come in a later phase, with no date set. For now all you can do is stake it, instantly and with no lockup. Stakers earn USDC from 1% of realised PnL on settled trades while nothing is queued, plus whatever the pool holds above the cap.

It’s still a loss. Close that $100 trade 0.5% against you and you’re $50 down, holding a claim on other people’s future losses that every other holder shares. People can also run a long and a short together: one side loses and mints PAPER, the other wins most of it back minus the haircut and fee. That makes PAPER cheap to farm, and every farmer dilutes you.

Solana tokens using the Papertrade name are already trading, one with a price page on a big exchange. Real PAPER lives on HyperEVM and can’t be transferred, so anything you can buy on Solana isn’t it. The same goes for any PAPER claim site.

Is Papertrade safe? What can go wrong before you deposit

It’s unaudited and only days old, a 2-of-3 multisig can change fees and limits, and winnings can queue if the house pool runs short. Here’s what can go wrong.

• Pool shortfall. A big move that pays lots of winners at once can drain the capped pool. Margin comes back, but winnings wait in the queue until new losses refill it, and nothing says how long that takes.
• Price manipulation. Entry and exit both come from Hyperliquid’s mid. The deadband and haircut make small pushes less profitable, but two wallets were still accused of moving ETH on Hyperliquid by about 0.1 to 0.2%, with roughly $20M of trades each, while holding big Papertrade positions. On 11 October the team said its launch settings allowed too much exposure and began tightening limits. If someone pushes the book against you, your liquidation is still real.
• Admin powers. A 2-of-3 multisig (any two of three keyholders sign) can pause new opens, freeze markets (open positions can still close at the frozen mid), change fees, the haircut curve and limits, and manage relayers. Papertrade only says contract upgrades sit behind the 7-day timelock, which stops a queued upgrade taking effect for a week. The exposure limits were tightened the same day they were announced. No admin function directly blocks withdrawals from your balance, but in Phase 1 withdrawals still go through the website and relayers.
• No published audit. Guardian Audits was engaged in May 2026, but no report is out.
• Queues. In Phase 1, where things stand on 11 October 2026, only the website and whitelisted relayers submit trades. Liquidations rank above opens, and smaller trades may wait longer when it’s busy, which is exactly where a $10 position sits. You can cancel a trade while it’s still waiting. Pauses and phase changes go out on Papertrade’s X account.

Use a fresh wallet holding only what you plan to deposit, and type the domain in yourself.

Fund Papertrade from Solana, step by step

1. Pick your wallet setup

Your Papertrade account is an EVM address. On the Solana route your USDC is burned on Solana, so the Solana wallet holding it signs that burn. That route needs both: the EVM address, and a Solana wallet with the USDC plus a little SOL for the fee.

The easiest setup is one wallet that covers both and shows Arbitrum for the way out. Backpack is good and does exactly that, and our Solana wallet picks compare the others. Phantom has an EVM address too, but honestly it’s fallen off massively and feels slower now, and it doesn’t show Arbitrum. Fund with Phantom and you’ll have to import its key into an Arbitrum wallet like Rabby to reach your withdrawal later.

The cleaner setup is a separate EVM wallet like Rabby for Papertrade, with the USDC sitting in Solflare, which is way better for everyday Solana. Rabby is EVM only, so on the Solana route you sign the burn with Solflare. If the deposit screen won’t let you connect a separate Solana wallet for the burn, take the Arbitrum route in step 4 instead.

2. Connect and open Deposit

Type exchange.papertrade.xyz yourself or use the link at the top. Connect the EVM wallet, press Deposit and sign to set up trading. The trading key the app creates can’t withdraw your funds.

3. Use the Solana route

The deposit screen takes USDC over CCTP from Ethereum, Arbitrum and Solana, plus an existing Hyperliquid balance. CCTP is Circle’s native USDC transfer: USDC is burned on one chain and minted on the other, so you never hold a wrapped token. Pick Solana and sign the burn with the Solana wallet holding the USDC. Any app fee appears in the prompt before you sign.

4. Or go through Arbitrum

If the Solana route is down or you’re on an EVM-only wallet, bridge native USDC from Solana to your EVM address on Arbitrum with Across or Mayan, then pick Arbitrum on the deposit screen. Keep a little ETH on Arbitrum for gas. Bridge fees move, so compare quotes before you send.

Costs and times, there and back

Circle’s fees and times are as of 11 October 2026. The bridge legs are live quotes.

How to open your first Papertrade position

1. Pick BTC or ETH, the only two markets.
2. Set margin and leverage so they multiply to at least $10,000, at the lowest leverage your deposit allows.
3. Read the liquidation price and compare it with the table above. If it’s closer than you can stomach, raise the margin before you confirm.
4. Confirm, and close when you’re done.
5. Check the result. A win pays out after the haircut and fee, or returns your margin with the winnings queued if the pool is short. A loss shows the PAPER you minted, which you can stake straight away.

How to withdraw from Papertrade to Solana

1. Withdraw from Papertrade. USDC lands in your Hyperliquid (HyperCore) spot balance at the same address. Only unpaid winnings ever wait in the queue, never margin from closed trades. If the app sees no Hyperliquid account at your address, the first withdrawal costs a one-time 1 USDC, and at least 10 USDC must still go out.
2. Withdraw from Hyperliquid. Use Withdraw on Hyperliquid’s app, moving USDC from Spot to Perps first if the button doesn’t show it. It goes to Arbitrum for a flat $1 in 3 to 4 minutes. Circle’s direct HyperCore to Solana route only works through Hyperliquid’s API, so for most people Arbitrum is the way out.
3. Bridge Arbitrum to Solana. You need a little ETH on Arbitrum to sign this. If you came in through the Solana route you won’t have any, so get a couple of dollars of ETH onto Arbitrum first, for example by withdrawing a little ETH from an exchange straight to Arbitrum. Then run Across with Arbitrum as the source, the same flow as from Base, and check you received native USDC (mint EPjFW…Dt1v).

Is Papertrade worth it? A view from the house side

When I LP on Meteora, I’m the one collecting fees off people trading through my range. Here the house pool and the PAPER stakers sit in that seat. The haircut, the 2% fee and the early liquidation all go their way, and traders at 1000x are the ones paying.

The clever bit is that the only way onto the house side is to lose first. Even hedged with a long and a short, the winning side still pays the haircut and the fee, and every farmer dilutes the rest. You pay for PAPER with losses, at a falling rate, and you can’t sell it.

If you want a look, put in $11 you’re happy to lose. If you want a real trade, think 20x with $500 or more, no funding for a few days, eyes on the liquidation price, and winnings that might queue behind a capped pool.

Rather stay on Solana?

Our Solana perp DEX comparison covers fees, leverage and liquidity with your funds staying on Solana, and Aster vs Hyperliquid compares two orderbook perp DEXs if the house pool puts you off. Axiom’s Hyperliquid perps tab lets you trade Hyperliquid from a Solana terminal, and our terminal reviews cover the rest. If you’d rather have a fixed maximum loss than a liquidation price, prediction markets on Solana cap it at your stake. If you hold SOL, Leaps covered calls earn on it instead. Everything else is in the perps hub and our trading guides.

FAQ

Is Papertrade paper trading?

No. Despite the name, it uses real USDC. Wins and losses are real money, and a liquidation takes your whole margin.

What is the minimum deposit on Papertrade?

At least 10 USDC has to arrive, plus the one-time $1 activation. But every position needs $10,000 of notional, so $10 only works at 1000x. For 20x you need about $500 of margin.

Which countries can use Papertrade?

Papertrade hasn’t published terms or a list of restricted countries. Hyperliquid’s own app blocks US users under its terms, and the usual way out runs through it, so if you’re in the US this isn’t for you. Until written terms are out, keep deposits small.

Who runs Papertrade?

Traders Jez (izebel_eth) and Blurr co-founded it. The admin multisig is held by the two of them plus UngusTrade.

Can I deposit from an exchange?

Yes. Withdraw USDC to your Solana wallet on the Solana network and use the Solana route, or to your EVM wallet on Arbitrum. Check the network picker twice, and never send an exchange withdrawal straight to a contract address.