Asymmetric Impact on Winning Papertrade Positions

How Papertrade settles profitable closes and funds LP economics without a conventional notional trading fee.

Official Papertrade documentation · Updated November 5, 2026 · Canonical domain: papertrade.finance

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.

Why the adjustment applies to profitable closes

Asymmetric impact is designed around the protocol cost of paying trader profit. A profitable settlement removes value from the LP, so the documented model can reduce the payout as impact grows. A losing close already transfers value toward protocol-side accounting and therefore follows a different path.

Impact is not orderbook slippage

The adjustment should not be confused with trade-size slippage from consuming orderbook depth. Papertrade can still use a BBO-mid reference while applying a protocol settlement function to profitable PnL. Those are separate layers of the execution model.