BTC Hedge Spread

Thesis

Farms PAPER on Papertrade by running BTC rounds: a leveraged long, then an equal short once BTC rises, closing both when a leg loses 40%.

Strategy

• Open the long: Each round opens a BTC long with your chosen margin (default and minimum 50 USDC) at your chosen leverage (default 50x). • Hedge on a rise: When BTC climbs the gap (default 0.4%) above the long's price, it opens a short of the same size. • Exit at 40% loss: Any leg down 40% of its margin closes the round's legs, earned PAPER is staked, and a new round starts.

Exposure

• Holds: BTC long and short — One BTC long, plus an equal short after BTC rises by the gap; USDC otherwise. • Venue: Papertrade — Your USDC and positions sit in your Papertrade account; fund it with Papertrade USDC. • Leverage: Default 50x — You choose the leverage at start; margin times leverage must be at least 1,000 USDC. • Costs: Price impact, win fee — Papertrade's price impact on opens and closes and its 2% fee on winnings. • Data: Circuit — BTC prices and Papertrade market rules come from Circuit. • On unwind: USDC on Papertrade — Closing any open legs returns their margin plus or minus profit in USDC; staked PAPER stays staked.