Long only
- Available cash
- $200
- Queued claim
- $15.968
- Cash depletion
- $0
Long: closed at final move
Strategy Lab
HypotheticalPaired legs can both lose their margin on a reversal.
Scenario results
Hypothetical · same margin budgetHypotheticalPnL incl. queued claims$15.968
Short only
- Available cash
- $180
- Queued claim
- $0
- Cash depletion
- $20
Short: closed at final move
Paired legs
- Available cash
- $190
- Queued claim
- $7.984
- Cash depletion
- $10
Long: closed at final moveShort: closed at final move
PnL includes queued claims at face value. They aren’t available cash; payment isn’t guaranteed.
Assumed price path
Assumed full-margin exit: 9.95% adverse move per leg. Approximation, not a verified liquidation quote. A terminated leg stays closed through a reversal.
Settlement breakdown
| Measure | Long only | Short only | Paired legs |
|---|---|---|---|
| Capital and exposure | |||
| Capital requiredMargin budget + additional costs | $200 | $200 | $200 |
| Margin exposedFull loss possible across the opened legs | $200 | $200 | $200 |
| Margin left idle | $0 | $0 | $0 |
| Gross notional exposure | $2,000 | $2,000 | $2,000 |
| Losses and PAPER basis | |||
| Realized losing-leg loss | $0 | $20 | $10 |
| Assumed eligible mint basisAfter carve, except full-margin exits | $0 | $19.6 | $9.8 |
| Profit and queued claims | |||
| Adjusted winning profitAfter assumed deadband and haircut | $15.968 | $0 | $7.984 |
| Additional costs | $0 | $0 | $0 |
| Profit paid now | $0 | $0 | $0 |
| Unpaid profit claimNot withdrawable cash; payment not guaranteed | $15.968 | $0 | $7.984 |
| Cash and scenario PnL | |||
| Available cashIdle funds + returned margin + paid profit | $200 | $180 | $190 |
| Cash depletionCapital required − available cash; negative means a cash gain | $0 | $20 | $10 |
| Scenario PnL including claimsAdjusted profit − loss − costs | $15.968 | -$20 | -$2.016 |
| PAPER sensitivity | |||
| PAPER at your assumed ratePAPER uses your fixed-rate assumption. No cash value is assumed. | 0PAPER · assumed rate | 1,960PAPER · assumed rate | 980PAPER · assumed rate |
≈ marks values shortened to six decimals. Cell tooltips show results to 18 decimals. PnL includes claims and is not a cash return or verified protocol result.
Leg outcomes
Long only
- Long closed at 1% from entry; returned $200 of margin.
Short only
- Short closed at 1% from entry; returned $180 of margin.
Paired legs
- Long closed at 1% from entry; returned $100 of margin.
- Short closed at 1% from entry; returned $90 of margin.
Model assumptions
Price path and exits
All legs share an entry price. Moves are percentages of that entry, joined by straight segments: entry → first move → final move. A leg exits permanently at its assumed full-margin threshold; survivors close at the final point. Positions do not net, rebalance or reopen.
The assumed adverse threshold is 100 ÷ leverage − buffer bps ÷ 100, in percent. This is an explanatory approximation, not a verified liquidation quote. A reversal can take both margins. The initial hedge ends when one leg exits.
Profit adjustments and losses
For a surviving winner, the entered price-move deadband is removed before applying your constant profit-retention percentage. Actual documented impact varies with the move and market parameters; this model does not reproduce that curve.
A voluntary loss contributes its raw loss less your assumed LP carve to the mint basis. A full-margin exit contributes the entire lost margin. A 2% carve illustrates a solvent pool; 0% illustrates no carve. Pool state and settlement order can change actual eligibility.
Payout share and LP carve are independent sensitivity inputs here. Some combinations may not represent a feasible protocol state; the model does not simulate pool solvency or settlement order.
Cash and queued claims
Only your entered paid share of adjusted profit joins returned margin and idle funds as available cash. The rest is a queued claim. Scenario PnL includes that claim at face value; its payment is not guaranteed. Additional costs are funded outside the margin budget and charged once per opened leg.
Gas, spread, slippage, latency, funding or other applicable costs are not inferred. Enter an aggregate cost assumption. The model cannot predict failed fills, changing OI headroom or mismatched entry/exit prices; the missing-second-leg switch tests one exposure failure.
PAPER estimate
Eligible losses mint PAPER. The optional fixed rate is an assumption. The documented default flat rate is 100 PAPER per eligible USD before the tracked-LP threshold of $2 million; above it, minting depends on cumulative tail progress and can require integration across the threshold.
This calculator does not know the LP state or apply minting tiers. Your rate may not apply. PAPER has no assumed dollar value, and these scenarios do not forecast rewards or rank strategies.
Sources
Based on Papertrade documentation dated April 22, 2026, reviewed October 2, 2026. Its defaults are not verified launch parameters. Calculations run in your browser; drafts stay on this device.