Papertrade adds 0.5% builder fee on wins through third-party frontends
The same contract upgrade holds back payouts slightly on very small winning moves. Closes on papertrade.xyz pay no builder fee.
· Effective · Verified 2026-10-26 via official docs diff
Papertrade's second contract set went live on HyperEVM on 21 October 2026. Winning closes signed through a frontend the protocol has approved as a builder now pay that frontend 0.5% of the gain, on top of the existing 2% win fee. papertrade.xyz names no builder, so trades there are not charged.
Under the first contract set, builder codes were documented as a planned 1% revenue share taken from the protocol's own revenue, with nothing added to what the trader pays, and they were not live. The new fee is charged to the trader on wins. On losing closes the builder's share comes out of the pool's gain, and liquidations never pay it. The protocol owner can change the rate through a 24-hour timelock, up to a 1% cap.
The upgrade also adds a holdback to the haircut on winning closes. On the standard payout curve, moves of 0.75 to 6 basis points are held back by up to about 1.2 bps. On an off-hours curve used on weekends and other quiet hours, moves of 0.3 to 10 bps are held back by up to about 2 bps. Papertrade's docs say a bigger move still always pays more. Larger moves are not affected: a 1% BTC move still keeps about 88% of the raw gain before the win fee.
The release also changes how PAPER is minted. Each loss now mints a fixed share of the current supply per dollar of loss, and while the pool is below zero the part of a loss that refills it counts up to 5x.
“Closes signed by a session key that names an approved builder pay it 0.5% of the PnL; liquidations never do.”
— Papertrade Docs, Protocol changes
Who this affects
Papertrade traders who close winning positions through approved third-party frontends, and traders who close wins on very small price moves.
Papertrade at a glance
Papertrade is a synthetic perpetuals exchange on HyperEVM offering BTC and ETH with up to 1000x leverage. Every trade is a swap against a single liquidity pool at Hyperliquid's order-book mid price, with no funding, spread or fee on position size. The protocol takes its cut only from winning closes.
More from the newsroom
Sources
Last checked . Fees and terms change often; the venue's own page wins if it disagrees with ours.
- Papertrade Docs: Protocol changes (contract set 2, live 21 Oct 2026) — checked 2026-10-26
- Papertrade Docs: Builder codes — checked 2026-10-26
- Papertrade Docs: Builder codes, contract set 1 — checked 2026-10-26
- Papertrade Docs: Asymmetric impact PnL — checked 2026-10-26
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