PAPER MILL

Thesis

Earn PAPER from opposite ETH positions at 64x, then stake it to collect USDC rewards.

Strategy

• Pair: Open equal ETH longs and shorts at 64x, each using up to 45% of capital, subject to venue capacity and the remaining loss budget. • Exit: Close both at a 1% adverse ETH move on either leg, loser first; close earlier within 0.3% of liquidation or when a lone leg reaches its limit. • Budget and rewards: Reset loss usage once to zero with a 20% budget based on capital at reset; keep lifetime results and check staking and rewards every 30 minutes.

Exposure

• Holds: ETH pair and PAPER — Opposite ETH positions use USDC margin; earned PAPER is staked for rewards. • Venue: Papertrade — Positions and USDC sit on Papertrade; fund the Papertrade account before starting. • Leverage: Fixed 64x — Each ETH leg has exposure equal to 64 times its margin. • Costs: Haircut and winner fee — Winning closes pay a move-dependent haircut and a 2% fee. • Data: Hyperliquid, Papertrade — api.hyperliquid.xyz supplies live quotes; exchange.papertrade.xyz supplies terms absent from Circuit. • On unwind: USDC and staked PAPER — Closing positions returns available proceeds in USDC; stopping alone leaves positions and staked PAPER in place.