Papertrade Ties 1,000x Leverage to a Pool Funded by Trader Losses

Papertrade’s synthetic trading venue pairs up to 1,000x leverage with a pool funded by traders’ realized losses, making the pool’s ability to pay winners a central part of the product. Trading opened Saturday, Oct. 10, at 10 a.m. ET (14:00 UTC). Papertrade’s synthetic positions settle against its own liquidity pool and use the midpoint of Hyperliquid’s best bid and offer as a reference price. They do not open perpetual positions on Hyperliquid itself, and execution is subject to open-interest safety caps. At maximum leverage, a 0.1% move against a position matches its initial margin in a simple notional calculation. Maintenance requirements or other trading mechanics can trigger liquidation sooner. The pool began at zero, separate from user deposits, under Papertrade’s launch plan . It grows through traders’ realized losses.

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