11 MARKETSUSDG10 S GRIDNEXT FILL 00:10
PAPERHANDS
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Index 00Trade 01House 02Docs 03X ↗
//Fig.01_The Creation of Adam, detail, 1512
The hands of Michelangelo's Creation of Adam drawn as a halftone of square dots, with a paper receipt falling between the fingers.
060101160101
///Perpetuals, settled in USDG

The house starts at zero.

  • BTC, ETH and nine US stocks.
  • Up to 100x. Settled in USDG.
  • Losers receive paper.
  • Paper earns the fees.
Scan to trade
//Next_fill_00:10
10 S GRID
Open app Read the docs
//Last_12_fills_From chain events
WIN LOSS BUST

READING THE CHAIN

//House_cash_
READING
//Queued_
READING
//Paper_rate_
100 / $1 FLAT
//Paper_issued_
READING
//Markets_open_now_
//Trading_
READING
//02_ The loopFig.02

Lose a trade, own a share of the house.

Paperhands has no outside liquidity. The house is funded only by the losses of its traders, and it starts at zero.

Every loss mints paper to the trader who took it: a share of the house that cannot be transferred. Half of every fee and all the surplus above the reserve go to paper holders. The other half of each fee goes to the treasury.

//Minted_on_
Losses and liquidations
//Transferable_
No
//Share_of_fees_
50%
//Surplus_above_$75,000_
100%
//Pre-mint_
None
01A TRADECLOSES AT A LOSS02THE LOSERRECEIVES PAPER03FEES AND SURPLUSACCRUE TO PAPER04THE HOUSEPAYS THE WINNERS
//03_ The queue lineFig.03

Winners the house cannot pay yet wait in line.

When the house holds less cash than a winner is owed, the profit is queued, first in, first out. Every later loss pays the line before anything else, and a claim is paid only once every claim ahead of it is whole.

The margin always comes back at once. Only profit waits.

How the line works
//Paid_through_the_line_ $0.00//Waiting_ $0.00LINE EMPTY AT OPEN
//04_ One price per tradeFig.04

One price per trade, chosen by nobody.

A request fills at the first 10 second RedStone price after it is made. You cannot see that price when you ask, and the keeper cannot pick another: the contract accepts exactly one timestamp per request.

Anyone can execute a request with that signed price, you included.

NOW
//Request_
WAITING
//Fill_ts_
//BTC_price_

UTC. Prices: RedStone medians for BTC, one per grid point.

//05_ The marketsTab.05

Eleven markets.

Bitcoin and Ether trade around the clock, up to 100x. Nine US stocks trade up to 50x while the New York market is open, 09:30 to 16:00 on NYSE trading days. Positions stay open overnight and on weekends.

MarketSessionLast priceMax
Bitcoin logoBTCBitcoin24/7100xTrade ↗Ethereum logoETHEthereum24/7100xTrade ↗Tesla logoTSLATeslaNYSE50xTrade ↗NVIDIA logoNVDANVIDIANYSE50xTrade ↗Apple logoAAPLAppleNYSE50xTrade ↗Microsoft logoMSFTMicrosoftNYSE50xTrade ↗Amazon logoAMZNAmazonNYSE50xTrade ↗Meta logoMETAMetaNYSE50xTrade ↗Alphabet logoGOOGLAlphabetNYSE50xTrade ↗AMD logoAMDAMDNYSE50xTrade ↗Palantir logoPLTRPalantirNYSE50xTrade ↗
//Integrations_
RedStone logoPrices
Chainlink logoReference band
Global Dollar USDG logoCollateral
Paxos logoUSDG issuer
//06_ The numbersFig.06

Fees and limits, in full.

//Win_fee_
2% of profit
//Loss_fee_
2% of loss
//Open_fee_
None
//Spread_funding_
None
//Bust_buffer_
5 bps
//Deadband_
0.2 bps
//Profit_cap_
10x margin
//Min_margin_
$1
//Max_position_
$100,000
//Open_interest_cap_
$250,000 a side
//Fill_grid_
10 s
//Impact_curve_keep = 0.9 / (1 + 1/(move x 15,000) + 100,000/(1e6 x move x pm))

Gains pass through an impact curve that keeps more of a large move than of a small one. On BTC a 1% move keeps 88.3% of the gain and a 0.1% move keeps 75.7%. Losses are never scaled.

//07_ The paper curveFig.07

Early losses buy more of the house.

Below $25,000 of house equity, every dollar lost mints 100 paper. Above it the rate falls as (S / (S + H))², with S at $1,500,000 and H the equity above the threshold.

A high-water mark holds the rate down once it has fallen, so it never climbs back when the house shrinks.

//08_ RisksPlain words

What can go wrong.

R.01

Leverage

At 100x a move of 0.95% against you loses the whole margin. A bust is final, even if the price comes back a second later.
R.02

The queue

When the house is short, the profit of a winning trade can wait in the line for a long time. It is paid only from later losses and donations.
R.03

The oracle

Prices are signed by five RedStone signers and three are enough. A compromised signer set could post a wrong price inside the 2.5% Chainlink band.
R.04

The keeper

Requests and liquidations need someone to execute them. The keeper does it; if it stops, anyone can, but nobody is obliged to.
R.05

The contract

Smart contracts can contain bugs. This one has no upgrade path, so a bug cannot be patched in place.
R.06

Overnight gaps

Equity positions stay open while the stock market is closed. A stock can open far from its last price, beyond your bust price.
Read the risks in full
//09_ QuestionsFAQ

Questions.

Q.01What is paper?
A share of the house, recorded in the contract against your address. It is minted only to traders who lose, on the amount they lost. Paper earns half of every fee charged and all of the surplus above the reserve.
Q.02Can I sell or send my paper?
No. Paper is a ledger entry, not a token. It cannot be transferred, so it cannot be sold. What it earns is claimable in USDG at any time.
Q.03What happens when I win and the house cannot pay?
Your margin comes back at once. The profit joins the queue line and is paid, first in first out, from the next losses and donations. Collect it from the app when it is paid.
Q.04Why does my order not fill instantly?
Every request fills at the first RedStone price published after it, on a 10 second grid. Nobody can see that price in advance, so nobody can trade against the delay. Expect 2 to 12 seconds.
Q.05Do I own the stock?
No. A position is a synthetic exposure settled in USDG. There is no share, no dividend and no vote behind it.
Q.06What does one-click trading do?
Your wallet authorises a key generated in this browser, for at most 30 days, and sends it a little ETH for gas. That key can open and close positions for you and nothing else. Revoke it at any time.
Q.07Who can change the rules?
The owner can add markets, adjust their parameters inside hard limits, pause new opens, retire a market and set the signer set. Nobody can move user balances, claims or rewards. The contract is not upgradeable.
Q.08Is there a fee to deposit or withdraw?
No. You pay the chain its gas, and Paperhands charges fees only when a position closes.
0255075100

Fold early.
Own the house.

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