Overview

Erasertrade is a perpetuals exchange on HyperEVM. You trade BTC, ETH, SOL, XRP, BNB, DOGE and ZEC with up to 1000× leverage. Prices come straight from Hyperliquid, and you settle in USDC on Hyperliquid.

There is no order book. Every trade is taken by one counterparty, the pool. When you lose, your loss goes to the pool. When you win, the pool pays you. The pool started empty, so early on it pays winners only out of what losers have paid in.

• No spread and no funding. Positions open and close at Hyperliquid's price. Holding a position costs nothing over time.
• Wins are reduced by a haircut that depends on how far the price moved, and then by a 2% fee. Small, quick wins keep less; larger moves keep almost everything. See Wins, fees and the haircut.
• Losses earn ERASER. Every dollar you lose mints ERASER to you. Staked ERASER earns a share of protocol revenue in USDC.
• Everything is on chain. Balances, positions, the pool and the payout queue live in the contracts. The Transparency, Pool and Stats pages read them live.

Getting started

1. Connect a wallet. Any EVM wallet works. You stay on HyperEVM the whole time.
2. Deposit USDC from Hyperliquid. Open Deposit at the top. You get a personal deposit address, derived from your wallet, that only ever credits you. Send USDC to it from your Hyperliquid spot or perp balance. It arrives within a few seconds.
   • The minimum deposit is 10 USDC.
   • Your first deposit pays Hyperliquid's one-time 1 USDC account activation.
   • Send one deposit at a time and wait for it to be credited before sending the next.
3. Enable trading once. Right after you connect, you're asked for one signature (you can also do it from the account menu, or on your first order). It creates a session key in your browser that can open and close positions for 30 days without more pop-ups. The session key can never withdraw.
4. Trade. Pick a market, a direction, your margin and leverage. The order panel shows your bust price and how far away it is before you confirm.
5. Withdraw any time. Open Withdraw. USDC goes to your own address on Hyperliquid, or to any other Hyperliquid address you enter (for example an exchange deposit address). Withdrawals always need your wallet's signature; the minimum is 10 USDC.

Markets & orders

Each position has its own fixed margin and leverage. To change either, close the position and open a new one. You can hold several positions on the same market, long and short.

Market rules (live)

Which price you get

The exchange reads two Hyperliquid prices for every market: the mid of the best bid and ask, and the mark. Opens and closes fill at whichever of the two is worse for you. This stops anyone from trading against a gap between the two.

If mid and mark drift further apart than the market's price guard (above), or the book is crossed, trading on that market pauses until they agree again.

Price protection

Trades have no slippage, but a moment passes between your click and the block your order lands in. Every order carries a worst acceptable price for that moment: 10 bps from the price you see by default, adjustable under the gear in the order panel (2–25 bps). If the price moves past it, nothing is traded and nothing is charged. Signed orders expire after at most 10 minutes.

Minimum hold for wins

A position can be closed in profit only 5 seconds after it opens, so nobody can push Hyperliquid's price for a moment and cash in. Closing at a loss, and liquidation, are never delayed.

Limit per wallet

One wallet's positions on a market can add up to at most that market's max position (in the table above), however many positions it holds.

Open interest caps

Each side of each market has a cap on total open positions, kept a fixed headroom above current open interest. A hard ceiling in the contract bounds how far caps can ever be raised. If a cap is reached, new positions on that side wait until some close.

Wins, fees and the haircut

Losing costs exactly what the price moved. You pay no fee on a loss.

A winning close is paid in three steps:

1. Deadband. A sliver of the move, 0.2 to 1 basis point depending on the market (its deadband), is taken off first. A move smaller than the deadband pays nothing.
2. Price-impact haircut. The remaining gain is scaled by a factor that grows towards 1 as the move gets larger:

   kept = (1 − baseRate) / (1 + 1 / (move × rate) + reference / (move × positionMultiplier))

   It does not depend on your position size. The smaller the move, the bigger the share taken: a 0.05% move keeps roughly half or less, a 1% move keeps most of it.
3. 2% fee on what is left. Half goes to ERASER stakers, half to the protocol.

How much of a win you keep (live)

Share of the raw gain you are paid, after deadband, haircut and fee, for a favourable price move of:

Liquidation

A position is liquidated at its bust price: where the price has moved against it by its leverage's share, minus a small buffer:

long: bust price = entry × (1 − (1 / leverage − buffer))
short: bust price = entry × (1 + (1 / leverage − buffer))

At 100× with a 5 bps buffer, that is a 0.95% move. At 1000×, it is 0.05%. The buffer is fixed when you open the position, so later changes to market settings never move your bust price.

• Both prices must cross. A position is only liquidated once both the mid and the mark are past its bust price, so a brief spike in one of them is not enough.
• You lose the position's margin, nothing more. Your other balance and positions are untouched.
• Anyone can liquidate. Keepers do it within seconds; the contract checks the rule, not who calls it.
• A liquidation still mints ERASER, on the same basis as a losing close.

The pool & payout queue

The pool is the counterparty to every position. It holds the losses traders have paid in, and pays winners out of them. It started at $0: nobody seeded it, and there is no outside LP to withdraw it.

When the pool can't pay a win in full

Your margin always comes back to you. If the pool doesn't have enough cash for the profit part of a win, the rest joins the payout queue:

• The queue is first-in, first-out. The oldest entry is paid first.
• While anything is queued, new losses go straight to the queue (into a reserve for queued winners) instead of the pool, and the fee on losses is waived.
• Keepers pay out the queue continuously as cash comes in.
• You can use money the pool owes you as margin for a new position. A loss on such a position doesn't mint ERASER, because no new cash came in.

ERASER & staking

Minting

ERASER is only ever minted to traders, on realised losses. There is no pre-mint, team or investor allocation.

• While the pool's tracked balance is below $2M (including below zero), every $1 of loss mints 100 ERASER.
• Above $2M, the rate tapers with the loss volume minted in that region so far: 100 × (S / (S + H))², where H is that loss volume and S = $120M. H never goes down, so the taper is permanent.
• One large loss mints exactly as much as many small ones adding up to the same amount.
• Losses on positions funded from queued payouts don't mint.

Staking

Staked ERASER earns USDC. There is no lockup: unstake any time.

• Stakers get half of every fee: 5% of each realised loss and 2% of winners' profit.
• When nothing is queued and the pool holds more than the staker cap, the surplus above it goes to stakers too.
• While the payout queue owes winners, stakers get nothing: every incoming dollar goes to the queue first.
• Each distribution streams to stakers evenly over 7 days. Claimed rewards land in your trading balance.

Keys, custody & governance

Keys

• Your wallet signs withdrawals, staking, reward claims and the one-time trading approval.
• The session key lives in your browser and can only open and close positions, for at most 30 days. It can't withdraw or move funds anywhere.
• The relayer batches signed orders onto the chain and pays the gas. It can't change an order: the contract checks your signature. If the relayer stops, you can still close positions and withdraw by sending your signed request to the contract yourself.

Custody

USDC stays on Hyperliquid, held by the exchange contract's own HyperCore account. Your deposit address is a small contract created for your wallet; the exchange credits you only after verifying the USDC actually arrived.

Governance

On the live deployment, contract upgrades and parameter changes are made by a multisig: several independent signers must approve each change, and it applies as soon as they do. There is no timelock. The Transparency page shows the multisig's address.

Contracts

Risks

• High leverage loses fast. At 1000×, a 0.05% move liquidates the position. Only use money you can afford to lose.
• Wins can be delayed. If the pool can't pay a win in full, the profit waits in the payout queue until new losses come in. There is no guarantee how long that takes.
• Small wins are haircut hardest. Wins on tiny moves keep much less of their gain than wins on large moves.
• Price source. Prices come from Hyperliquid. An outage or extreme move there affects trading here; trading pauses if the two prices disagree too much.
• Smart contract risk. The contracts are not yet audited. Bugs could lose funds.
• ERASER has no guaranteed value. Its rewards depend entirely on protocol revenue.

FAQ

For developers

Every page reads a public HTTP API served by the relayer. Amounts in USDC are 6-decimal integers and prices are 18-decimal integers, sent as strings, unless noted.

Signed intents use the EIP-712 domain “Erasertrade” version 1 on the batch executor contract. The TypeScript SDK in the repository builds and signs them.