Papertrade.xyz Draws $118 Million While Offering 1,000x Leverage

Papertrade.xyz has attracted $118 million in deposits while offering leverage of up to 1,000 times, a structure that increases exposure to platform and liquidation risk.

As of 11:45 a.m. ET (15:45 UTC) on Oct. 10, the platform showed 2,349 open positions with about $11 billion in open interest. The positions were backed by $54 million in capital.

Papertrade.xyz is a synthetic perpetual-contract decentralized exchange built on Hyperliquid HyperEVM. It does not charge slippage, funding rates, spreads or traditional notional trading fees. Trades are executed through synthetic swaps between users and a shared protocol liquidity pool.

Traders who lose positions may receive PAPER tokens. Profitable traders may face delayed withdrawals if the platform does not have enough funds to cover payouts.

The platform was founded by Jez and Blurr, who operate with partial anonymity. The combination of extreme leverage, large open interest and substantially smaller backing capital leaves the platform exposed to rapid liquidation and liquidity stresses.