Papertrade PnL — Wins, Losses & PAPER Minting
What happens when a Papertrade position closes: what the trader keeps, what the protocol takes and what losses can mint.
Winning closes
Raw profit comes from the price move against position notional. Before the gain is credited, the protocol can apply asymmetric impact that is strongest on very small winning moves and less severe on larger moves.
Losing closes
The trader realises the market loss without an additional user-side charge on top. LP-side fee accounting depends on solvency and queue state.
Eligible realised losses can mint PAPER according to the current emissions curve.
Why the settlement is asymmetric
Winning PnL is scaled while losses are not additionally scaled against the trader. The protocol therefore places most trading-economic friction on profitable closes.
Related Papertrade Guides
Frequently Asked Questions
How are winning Papertrade trades settled?
Winning closes are settled against protocol LP accounting and can be affected by the documented asymmetric-impact mechanics.
What happens on a losing trade?
Realized loss reduces the trader result and eligible loss basis can participate in PAPER minting under the tokenomics rules.
Can payout timing depend on LP liquidity?
Yes. Eligible unpaid profit can enter the FIFO payout queue when immediate liquidity is insufficient.