PaperTrade Uses Hyperliquid Midpoint for Synthetic Pricing

PaperTrade acknowledged reports of attempts to shift Ether (ETH) quotes on Hyperliquid, a venue whose prices inform the platform’s synthetic Bitcoin (BTC) and Ether contracts.

PaperTrade sets each synthetic contract’s reference price halfway between Hyperliquid’s top buy and sell quotes. As a result, changes in ETH quotes can affect reference prices for both BTC and ETH execution, even when no matching perpetual position is opened on Hyperliquid.

PaperTrade uses a protocol-owned pool, so its contracts can reflect movements in external quotes without matching traders directly on that venue. The platform previously tightened exposure limits for its on-chain contracts and approved relayers in earlier exposure-limit changes.