PAPER MILL Runner

Thesis

Earn PAPER from losing BTC legs while the opposite leg offsets the loss, then stake the earned tokens.

Strategy

• One BTC pair: Open a 100x BTC long and short together, each using up to 45% of funds and at least $100 margin. • Exits: At a 0.28% move (0.20% when minting is high) close the winning leg; hold the loser until it is back at breakeven or 0.4% against it. • Capacity and staking: Check BTC 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 and PAPER — Opposing BTC 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.