Papertrade is preparing to open its HyperEVM perpetuals exchange on Saturday, Oct. 10, offering leverage of up to 1,000 times. The platform has attracted approximately $85.3 million in deposits ahead of the start of trading, according to data tracked by DefiLlama.

Trading is set to begin at 10 a.m. ET, or 14:00 UTC, once a planned HyperEVM upgrade is completed. Deposits will pause 15 minutes earlier, at 9:45 a.m. ET, to allow the system to prepare. The team has stated that users who want to take part from the opening must fund their accounts in advance.

Liquidity Structure and Settlement Rules

Papertrade operates with its own liquidity pool rather than matching traders against one another. The house-side pool will start with a zero balance and grow as traders realize losses. Customer deposits remain separate from this pool and do not automatically serve as capital available to settle profitable positions.

Entry and exit prices for contracts are based on the midpoint between Hyperliquid’s best bid and offer. Positions are synthetic and do not create corresponding perpetual contracts on Hyperliquid itself. The protocol does not apply recurring funding rates. Instead, an asymmetric impact mechanism reduces the amount paid out on profitable closes.

When a winning trade is closed and the pool lacks sufficient funds, the unpaid profit is recorded as a queued liability. Later trading losses supply the capital needed to settle those claims. A trader’s original collateral is released upon closing a profitable position even if the full profit remains queued.

Access Controls and Administrative Powers

At launch, trading will be available only through the platform’s website and a set of approved transaction relayers. Direct public access to the trading contracts will remain restricted during the initial phase. Platform operators retain the ability to pause new positions, freeze individual markets, and adjust fee parameters. Any contract upgrades must pass through a seven-day timelock.

PAPER Token Mechanics

The PAPER token is minted from realized losses and begins with a supply of zero. No tokens have been allocated to the team or external investors. While the tracked pool remains below $2 million, the initial issuance rate is set at 100 PAPER for each dollar of eligible loss basis, after which the rate declines according to the protocol’s emissions curve.

At the outset, PAPER supports staking and unstaking but does not allow transfers between wallets. Eligible settled trades allocate a 1 percent share of realized profit and loss to stakers only when the payout queue is empty and the pool can cover the distribution. Additional distributions may occur from pool gains that exceed a $5 million reward cap.

The combination of extreme leverage, a self-contained liquidity model, and a queue-based profit settlement system positions Papertrade as a distinct entrant in the growing market for on-chain perpetual futures.