Fees are 2% of a trader's gain after the price-impact haircut, plus 2% of the margin of liquidated positions, and half goes to PAPER stakers and half to the dev fee recipient. Profit the protocol-owned USDC pool earns above a $5 million cap is also paid to PAPER stakers.

Papertrade is a perpetual futures exchange on HyperEVM where every position is a trade against a single protocol-owned USDC pool, with no outside liquidity providers. Traders enter at the HyperCore mid price with no spread, slippage or funding. Losing traders are minted PAPER, which stakers lock to earn the protocol's USDC distributions.

Papertrade is a perpetual futures exchange on HyperEVM. Its contracts are upgradeable, owned by a timelock with a 7-day delay that is controlled by a 2-of-3 multisig.

website

twitter

docs

Derivative exchanges

Papertrade

# Papertrade Fees Methodology

## 1. Overview

Fees measures the total economic value generated by Papertrade, a decentralized trading protocol. This metric includes trading fees collected from closed positions and liquidations, as well as pool surplus sweeps distributed to stakers. These fees are paid by users to interact with the protocol's trading and staking mechanisms, reflecting its overall economic activity.

## 2. Data sources

- **Blockchain events**: `PositionsClosed` and `Liquidated` events from `Exchange` contracts, and `Distributed` events from `PaperStaking` contracts, covering HyperEVM

## 3. Step-by-step calculation

### Component A: Trading fee extraction

- **Purpose**: Capture fees generated from active trading activities, specifically position closures and liquidations.
- **Logic**: `PositionsClosed` and `Liquidated` events are parsed from `Exchange` contracts. For each event, the `stakerFee` and `devFee` fields are extracted and normalized by decimal precision. These daily values are aggregated to calculate the total daily trading fees (the sum of staker and developer fees) and the staker-specific fee portion.
- **Key fields**: `stakerFee` and `devFee`

### Component B: Staking distribution and gap tracking

- **Purpose**: Track the rewards distributed to stakers and calculate the difference between distributions and collected staker fees.
- **Logic**: `Distributed` events are parsed from `PaperStaking` contracts, and the distribution amounts are normalized by decimal precision. A daily gap is calculated by subtracting the daily staker fee portion (derived in Component A) from the daily distributed rewards.
- **Key fields**: `arg1`

### Component C: Pool surplus sweep calculation

- **Purpose**: Determine the pool surplus sweep representing distributions that exceed the collected staker fees.
- **Logic**: A cumulative sum of the daily gap is calculated over time. To prevent a lag in distribution from producing negative daily values, a running maximum of the cumulative gap (constrained to be at least zero) is computed to establish the cumulative sweep. The daily pool surplus sweep is then calculated as the daily change, representing the difference between the current and previous day's cumulative sweep.
- **Key fields**: `cumulative_gap` and `cumulative_sweep`

### Component D: Final fee aggregation

- **Purpose**: Combine all fee components into the final metric.
- **Logic**: The daily trading fees and the daily pool surplus sweeps are aggregated to represent the total fees generated by the protocol.
- **Key fields**: `trading_fee` and `pool_surplus_sweep`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

PapertradePAPER

Fees

Fees

Competitive landscape

Chain breakdown