papertrade

What it is

Trades are synthetic swaps between the trader and a liquidity pool. The contract lives on HyperEVM and reads Hyperliquid's best bid and offer as its price. There is no order book on papertrade itself, and the position is not a Hyperliquid perpetual.

• Up to 1000× leverage on the launch markets, BTC and ETH.
• The fill is the mid price. Size does not move that price, inside open-interest caps.
• No funding payments and no conventional notional fee.
• The liquidity pool starts at zero and grows from traders' realised losses.

PAPER

PAPER is minted when a trader realises a loss. While the pool's tracked liquidity is under $2M, the mint rate is flat: 100 PAPER per $1 of eligible loss. Above that, the rate decays. There is no pre-mine and no team allocation. At launch, PAPER can be staked and unstaked, and it cannot be transferred.

Staked PAPER can earn USDC from the pool: a slice of settlements that credit the pool, and, once the pool is above a $5M cap, the excess above that cap. Unstaked PAPER earns nothing. The PaperJet treasury stakes the PAPER it mints. It claims the USDC. It does not hand the PAPER to NFT holders.

The queue

Because the pool can start empty, a winning close may not be paid immediately. Wins can sit in a first-in queue until later losses refill the pool. A queued win is not cash in the treasury. The public site for the protocol is docs.papertrade.xyz. Dates for pre-deposit (8 Oct 2026) and live trading (10 Oct 2026) follow papertrade's own announcement. Exact UTC times are posted when they confirm them.

Why it matters here

The PaperJet mint closes when that live trading begins, so later buyers do not join a treasury that has already started to mint PAPER. Capital raised during the mint is what the treasury can convert and deposit before the window shuts.

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