Papertrade Has No Current Plans to Enable Off-Contract PAPER Transfers

Papertrade has no current plans to let users move PAPER outside its contracts, citing concern that PAPER-linked derivatives could amplify the payoff from manipulating prices used by its synthetic perpetuals.

In an Oct. 19 statement, the platform said it would not allow off-contract transfers “at this juncture.” Papertrade launched Oct. 10. Its policy means the token itself remains nontransferable outside the platform’s contracts.

Papertrade mints PAPER for eligible trades that close at a loss and eligible liquidations. Users can stake the tokens for USD Coin (USDC) distributions.

The platform’s concern is that a trader could short PAPER in derivatives markets while manipulating Bitcoin (BTC) or Ether (ETH) prices used by Papertrade’s synthetic perpetuals. An attack on the platform could then also benefit the short position. Papertrade said it can limit the size of its bankroll but cannot control exposure in outside derivatives markets.

Those contracts are separate from transferring PAPER itself. PAPER perpetuals have traded on Hyperliquid, and Aster opened a prelaunch contract tied to PAPER.