The payout queue explained

Where the pool's money comes from

Papertrade's liquidity pool started with no seed capital. No one can deposit into it directly; it grows only from the losses of traders. That keeps the design simple and fair-launched, but it means the pool can be smaller than the total profit traders want to take out at a given moment.

What happens when the pool is short

If you close a winning position and the pool can pay, you are paid immediately. If it cannot pay the whole profit, the rest goes into a queue. The contract keeps a running list of unpaid wins and pays them from the front as soon as new losses come in. A queued payout is on-chain debt owed to you: it is a delay, not a haircut.

Your margin is never queued

When you close a position opened from your available balance, the original margin returns to your balance straight away. Only the profit portion of a winning close can land in the queue. On a losing close, the loss comes out of your margin and the rest is yours immediately. The exception is a close at or past the liquidation price, which is settled as a liquidation.

Trading with queued balance

The terminal shows your queued amount as Queued payouts. You cannot withdraw it yet, but you can use it as margin for new positions. Be aware that a position opened from queued balance is different: its margin is itself a queue claim, so when you close it, the surviving claim can be queued again.

Why trading when the pool is underwater is rewarded

While the pool is below zero, losses that refill it mint PAPER faster, up to 5 times the normal rate. That attracts trading activity exactly when the queue needs paying down. See PAPER staking.

What it means for you

• Check the Queue figure in the terminal before trading. A large queue means profits may take longer to become withdrawable.
• Do not plan on withdrawing a big win instantly.
• Your losses are never larger because of the queue.