Read this before you trade. Paper100 is a leveraged product with an unusual counterparty. These are the ways you can lose money, or wait for it.
You can lose your whole margin, fast
At 100x your bust price is 0.95 % from your entry, and BTC can move that far in minutes. A liquidation takes the full margin, and crossing the bust is final even if the price comes back.
A win can wait, possibly for a long time
The house pays winners only from cash it holds, and that cash comes only from losses and donations. If the house is short, your profit is queued behind every earlier claim. If losses stop arriving, the queue stops moving. Nothing guarantees that a queued claim will ever be paid in full. Your margin is never queued; only profit is.
Small wins keep less
The impact curve keeps at most 90 % of a gain before the 2 % fee, and much less on small moves: between 55 % and 65 % at a 0.05 % move, depending on the market, and less again below that. A trade that is right by a small margin can return less than you expect. See The impact curve.
Paper is not money
Paper cannot be sold or transferred. Its value is the fees and surplus it will earn, which depend on future trading and could be close to nothing.
The oracle
Prices come from RedStone's signers. If three of the five agreed on a wrong price, positions could fill or liquidate at it; the Pyth band limits such a price to 2.5 % from an independent reference. If Pyth stops updating, the program accepts no prices: requests wait or expire after one hour, and liquidations stop until prices return.
The keeper
If the keeper stops, requests do not fill by themselves. You can execute your own from the trade page. Liquidations and sweeps also wait until someone runs them.
Program bugs
The program can contain bugs. Tests, including property tests of its accounting invariants, reduce this risk but do not remove it. A bug could lock or lose funds.
No upgrade path
The program cannot be changed in place. A bug cannot be patched; the only remedy would be a new program that users move to themselves.
Admin powers
The admin can pause opens, retire markets, change caps and parameters within bounds, and replace the signer set. A compromised admin key could set parameters against traders within those bounds, or install a hostile signer set, still limited by the Pyth band. It cannot move balances. See Admin powers.
Solana
If the network halts or is congested, your requests may not land in time and you may be unable to close before a move.
USDC
Collateral is USDC. Its issuer can freeze token accounts, the program's vault included.
The session key in your browser
Anyone with access to your browser profile can use the session key to open and close positions until it expires or you revoke it. It cannot withdraw.
Where you live
Leveraged derivatives are restricted in many places. You are responsible for whether you may use Paper100 where you live. See the terms.