Papertrade Asymmetric Impact — Winning PnL Settlement
How Papertrade settles profitable closes and funds LP economics without a conventional notional trading fee.
How winning PnL is adjusted
Papertrade applies an asymmetric-impact scale factor to raw winning PnL. It is not a spread and is not a fee calculated directly from trade notional.
Key properties
Only profitable closes are impact-scaled. The percentage depends on the price move rather than the individual trade notional size, using market-level parameters.
Small winning moves are scaled more aggressively; larger moves retain a greater share of raw PnL.
Why this model exists
At very high leverage, the project documentation argues that ordinary notional fees or spreads do not fit the desired execution model. The cost is therefore tied to realised winning outcome.
Risk context
Asymmetric impact also adds friction to very small profitable moves, but the docs do not present it as a complete manipulation breaker.
Related Papertrade Guides
Frequently Asked Questions
What is asymmetric impact?
It is a documented adjustment applied to profitable settlement rather than a conventional symmetric trade-size slippage model.
Can quoted profit be lower than a simple price-change calculation?
Yes. The settlement mechanics can reduce profitable PnL compared with a naive notional-times-price-move calculation.
Does asymmetric impact apply like a funding rate?
No. It is a settlement mechanic and should not be treated as a conventional recurring funding payment.