Hedge cost per PAPER

A calculator for papertrade.xyz

Hedged trades on Papertrade, priced

On Papertrade, open a long and a short on the same coin at the same time, then close both. Price direction stops mattering: one side wins, one loses, and you mostly pay the small win-side haircut. The losing side mints PAPER. This shows what that costs per PAPER.

  1. Open long + short
  2. Close both
  3. The loser mints PAPER
Coin

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1× safe1000× wild

Copy it from the Papertrade dashboard. It starts at 100 and only falls as more losses come in.

How far price travels from your entry to the moment you close. One side wins this much, the other loses the same.

With an empty queue, 2% of a losing close goes to the LP as a fee and PAPER mints on the rest.

Cost per PAPER
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How leverage and price move change the cost

Each square is one hedged trade, both sides closed at the same price. Tap one to try it.

Leverage down the side, price move across the top.

Where the winner's gain goes

Deadband, impact haircut and the 2% win fee, taken in that order. The loser pays its full loss with nothing extra.

    Cost per PAPER at different moves

    Your margin, leverage and settings, both sides closing at the same price. Lower is better.

    Hedged (long + short)Losing one trade, unhedgedYour close
    Hedged cost per PAPER falls as the price move grows. An unhedged loss stays much higher.

    Share of the winner's gain you keep

    After deadband, impact haircut and the 2% fee. Small moves lose most of the gain.

    The share kept rises from near zero at tiny moves to about 88 percent at a 1 percent move.

    How this is calculated
    • Both sides open at the same entry price (Hyperliquid BBO mid). There is no spread, funding, slippage or gas charged to you.
    • Winning side: the gain is measured as if the exit were 0.2 bps worse (deadband), then scaled by 0.9 / (1 + 1/(move×15000) + 100000/(10⁶×move×k)) where k is 814.598 for BTC and 483.979 for ETH, then 2% comes off. These are launch values and the owner can change them.
    • Losing side: you pay the raw loss. PAPER mints on that loss (98% of it when the payout queue is empty, 100% when it is active) at the current mint rate.
    • Liquidation: crossing the bust price forfeits the whole margin, and PAPER mints on all of it. Bust is taken as a move of 1 ÷ leverage against that side. The docs put the real bust slightly closer, so liquidation checks here are approximate.
    • Mint rate: 100 per $1 at the start, then 100 × (120M ÷ (120M + H))² once tracked LP passes $2M, where H is the tail progress. It only goes down. Type in the rate your dashboard shows.
    • Cost per PAPER is net cost divided by PAPER minted. It is the PAPER price at which one cycle breaks even.
    • Not modelled: payout-queue delay on the winner's profit (your margin returns at once, the profit can wait), open-interest caps per side, minimum margin and position size, the $10M cap per position, close timing between blocks, owner rule changes, and what PAPER is worth. Repeated cycles assume the same rate each time, though your own losses push it down.

    Independent community tool, not affiliated with Papertrade. Figures come from the public docs and may be out of date. Not financial advice. Check the numbers with one small cycle first.