Wins and losses

What happens when a Papertrade position closes: what the trader keeps, what the protocol takes and what losses can mint.

Winning closes

Raw profit comes from the price move against position notional. Before the gain is credited, the protocol can apply asymmetric impact that is strongest on very small winning moves and less severe on larger moves.

Losing closes

The trader realises the market loss without an additional user-side charge on top. LP-side fee accounting depends on solvency and queue state.

Eligible realised losses can mint PAPER according to the current emissions curve.

Why the settlement is asymmetric

Winning PnL is scaled while losses are not additionally scaled against the trader. The protocol therefore places most trading-economic friction on profitable closes.