PAPER MILL

Thesis

Earn PAPER from losing BTC and ETH legs while opposite positions offset part of the losses, then stake the earned tokens.

Strategy

• Two pairs: Split funds equally across BTC and ETH; reserve both margins before concurrent 100x entries, using up to 45% per leg and at least $100. • Exits: Close both at 0.20% when minting is ≥100 PAPER/$ eligible loss, otherwise 0.28%; retain the 0.5% liquidation buffer and unmatched-leg closes. • Capacity and staking: Check BTC/ETH capacity every 5 seconds and live exits every 250 ms; use half either side’s room and stake earned PAPER from 1,000 tokens.

Exposure

• Holds: BTC, ETH and PAPER — Opposing BTC and ETH positions use USDC margin; earned PAPER is staked. • Venue: Papertrade — Fund this copy separately and coordinate the existing BTC agent before starting; it manages only its own positions. • Leverage: 100x per leg — Each $100 margin supports $10,000 exposure; larger allocations scale both pairs. • Costs: Winning-close deductions — Papertrade applies its profit haircut and winning-close fee. • Data: Circuit, BBO and RPC — Circuit supplies positions and capacity; api.hyperliquid.xyz streams prices; rpc.hyperliquid.xyz reads mint-curve values absent from Circuit. • On unwind: USDC and staked PAPER — Closing returns remaining margin and results in USDC; stopping alone leaves positions open.