# Parameters & Glossary

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Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: [254900IX2F2KCWNSSS64](https://lei.bloomberg.com/leis/view/254900IX2F2KCWNSSS64)).

Research Partner: Base58 Labs contributes execution research, systems modeling, and risk design.
{% endhint %}

This page collects the core parameters that govern the behavior of BASIS strategy modules. These parameters are used to interpret execution behavior, risk controls, and pool economics. Actual values may vary by environment and may change through governed policy updates.

***

## 1. Execution Parameters

These parameters control how orders are constructed and submitted to venues to maintain deterministic execution and execution precision.

| Parameter                  | Description                                                                 | Typical Range        | Rationale                                                                                                                         |
| -------------------------- | --------------------------------------------------------------------------- | -------------------- | --------------------------------------------------------------------------------------------------------------------------------- |
| Max Slippage Bound         | Maximum allowed slippage as a percentage of notional.                       | 3–10 bps             | Prevents execution in thin order books where trading cost would impair structural alpha capture.                                  |
| Min Depth Threshold        | Minimum order book depth required at target price levels.                   | Varies by asset      | Ensures sufficient liquidity exists to absorb the order without excessive market impact.                                          |
| Hedge Completion Window    | Maximum time allowed for both legs of a hedged trade to complete.           | 5–60 seconds         | If the second leg is not filled within this window, the first leg is reduced or unwound to avoid unintended directional exposure. |
| Order Slicing Size         | Child order size for iceberg or TWAP-style execution.                       | 5–15% of top-5 depth | Breaks large orders into smaller pieces to minimize market impact under established optimal execution models.                     |
| Time-in-Force              | Order validity policy per venue (IOC/FOK/GTC).                              | IOC or FOK preferred | IOC and FOK reduce stale order risk during rapid market moves.                                                                    |
| Max Order Size (% of Book) | Maximum size of a single order as a percentage of visible order book depth. | 5–15%                | Larger orders relative to visible depth can create disproportionate price impact.                                                 |

{% hint style="success" %}
BHLE execution environment: sub-50μs latency, 100K+ OPS, and proprietary routing infrastructure are used to improve execution precision under real market conditions.
{% endhint %}

## 2. Risk Parameters

These parameters are enforced by the risk engine's pre-trade eligibility gate. No strategy module can override them.

| Parameter                      | Description                                                                                    | Typical Range                | Rationale                                                                                                       |
| ------------------------------ | ---------------------------------------------------------------------------------------------- | ---------------------------- | --------------------------------------------------------------------------------------------------------------- |
| Exposure Cap                   | Maximum exposure per asset, per venue, or per strategy.                                        | 15–30% of AUM per venue      | Limits concentration and counterparty risk through capital distribution.                                        |
| Concentration Limit            | Maximum percentage of total capital deployed to a single venue.                                | 30% max                      | Ensures the failure of any single venue does not create catastrophic loss.                                      |
| Stablecoin Deviation Threshold | Trigger level for stablecoin stress response in reporting and treasury controls.               | > 1.5% deviation             | Activates protective controls if a reference stablecoin materially deviates from expected USD-equivalent value. |
| PAXG Peg Deviation Threshold   | Module-specific trigger for PAXG peg stress.                                                   | > 2.0% from LBMA spot        | Activates the PAXG Peg Deviation Monitor module.                                                                |
| Liquidation Buffer             | Safety margin maintained above the venue's maintenance margin requirement for derivative legs. | 150–300% of maintenance      | Provides a cushion against sudden price movements.                                                              |
| Margin Buffer Ratio            | Minimum margin ratio before the system begins reducing position size.                          | 200% warning / 150% critical | Warning level triggers gradual reduction. Critical level triggers state-machine protective controls.            |
| Reconciliation Interval        | Frequency of post-trade balance checks.                                                        | After every trade cycle      | Ensures the internal ledger and venue balances remain aligned.                                                  |

{% hint style="warning" %}
Risk controls are constrained by deterministic state transitions, mathematical bounds, and pre-defined failure handling. Administrative discretion cannot bypass hard-coded safety ranges.
{% endhint %}

## 3. Strategy-Specific Parameters

### 3.1 Cash-and-Carry / Delta-Neutral Funding

| Parameter                      | Description                                                      | Typical Range  |
| ------------------------------ | ---------------------------------------------------------------- | -------------- |
| `min_annualized_funding_rate`  | Minimum annualized funding rate required to open a new position. | > 5% APR       |
| `max_leverage`                 | Maximum leverage used on the perpetual futures leg.              | 1–3x           |
| `funding_rate_lookback`        | Historical window used to calculate average funding rate.        | 7–30 days      |
| `position_rebalance_threshold` | Delta deviation at which the hedge is rebalanced.                | > 1% net delta |

### 3.2 Spatial Arbitrage

| Parameter                    | Description                                                              | Typical Range |
| ---------------------------- | ------------------------------------------------------------------------ | ------------- |
| `min_cross_venue_spread`     | Minimum price difference between two venues required to trigger a trade. | > 10 bps      |
| `max_transfer_time`          | Maximum acceptable time for an asset transfer between venues.            | < 30 minutes  |
| `inventory_rebalance_target` | Target inventory balance across venues.                                  | 50/50 split   |

### 3.3 Statistical Arbitrage

| Parameter               | Description                                                       | Typical Range |
| ----------------------- | ----------------------------------------------------------------- | ------------- |
| `cointegration_p_value` | Maximum p-value from the Engle-Granger cointegration test.        | < 0.05        |
| `z_score_entry`         | Z-score of the spread at which a mean-reversion trade is entered. | > 2.0 sigma   |
| `z_score_exit`          | Z-score at which the position is closed.                          | < 0.5 sigma   |
| `lookback_window`       | Historical data window for estimating cointegration parameters.   | 30–90 days    |

## 4. Pool & Economics Parameters

| Parameter                 | Description                                                          | Policy                                                           |
| ------------------------- | -------------------------------------------------------------------- | ---------------------------------------------------------------- |
| Lock-up Duration          | Duration for which staked capital is committed.                      | 14 / 30 / 90 / 180 days                                          |
| Booster Multiplier        | Bonus factor applied to yield calculation based on lock-up duration. | 14D +10%, 30D +20%, 90D +50%, 180D +100%                         |
| Booster Reset Rule        | Lock-up timer behavior when adding stake.                            | Full reset on new aggregated stake                               |
| Unstaking Rule            | Withdrawal behavior for fixed pools.                                 | Unstake only after lock-up period ends                           |
| Reward Accrual            | How rewards appear during staking.                                   | Real-time accumulation as the same stToken in the Staking Wallet |
| Unstake Amount Logic      | Amount selection during unstake.                                     | Full position only, auto-MAX                                     |
| Claimable Amount Delivery | Where unstaked value is credited.                                    | Auto-credited to the Staking Wallet as stToken                   |

{% tabs %}
{% tab title="Wallet Model" %}

| Wallet         | Asset Type                            | Primary Use                           |
| -------------- | ------------------------------------- | ------------------------------------- |
| Funding Wallet | Native tokens: BTC / ETH / SOL / PAXG | Deposit and withdrawal                |
| Staking Wallet | stBTC / stETH / stSOL / stPAXG        | Stake, reward accrual, unstake credit |
| {% endtab %}   |                                       |                                       |

{% tab title="Swap Rules" %}
Swaps are same-token only at 1:1:

| Asset | Staked Token |
| ----- | ------------ |
| BTC   | stBTC        |
| ETH   | stETH        |
| SOL   | stSOL        |
| PAXG  | stPAXG       |

Swap fee: 0.01%
{% endtab %}

{% tab title="Funding & Withdrawal" %}

* Deposit fee: 0%
* Withdrawal fee: 0.05%
* Minimum deposit: No minimum
* BTC withdrawal time: 10 to 60 minutes
* ETH / SOL / PAXG withdrawal time: 1 to 10 minutes
  {% endtab %}
  {% endtabs %}

## 5. Referral Network Parameters

| Parameter          | Description                                                                        | Policy Example            |
| ------------------ | ---------------------------------------------------------------------------------- | ------------------------- |
| Contribution Scope | Reward scope based on verified referral network contribution.                      | Defined by program policy |
| Reward Cap         | Maximum total referral reward percentage under a contribution-based reward system. | Policy-bound              |
| Grace Period       | Maintenance window for referral eligibility continuity.                            | Program-defined           |

{% hint style="info" %}
BASIS does not use product tiers. Referral network logic, where applicable, is governed by contribution alignment, eligibility rules, and program caps rather than account plans.
{% endhint %}

## 6. Parameter Governance

Strategy parameters are not static. They are reviewed and adjusted by the Research Partner based on ongoing market analysis, execution quality review, and risk telemetry. All parameter changes are subject to strict governance:

* Change Logging: Every parameter change is recorded in the audit log with a timestamp, the old value, the new value, and the reason for the change.
* Bounded Ranges: Each parameter has a hard-coded minimum and maximum range. No parameter can be set outside this range, including by an administrator.
* Gradual Rollout: Significant parameter changes are rolled out gradually, starting with a small allocation, to observe real-world impact before full deployment.
* Control Integrity: State machine risk controls enforce parameter application at runtime.
* Research Oversight: Base58 Labs supports model research, validation, and parameter review for structural alpha capture systems.

## 7. Operational Glossary

| Term                     | Definition                                                                                                                                                    |
| ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Execution Precision      | The ability to achieve intended trade outcomes within bounded slippage, latency, and inventory constraints.                                                   |
| Structural Alpha Capture | Return generation derived from persistent market structure, pricing inefficiencies, and disciplined routing rather than discretionary directional prediction. |
| Deterministic Execution  | Execution behavior constrained by explicit rules, bounded state transitions, and verifiable policy logic.                                                     |
| Staking Wallet           | Wallet that holds stTokens, receives real-time reward accrual, and receives unstaked value as stToken.                                                        |
| Funding Wallet           | Wallet that holds native tokens used for deposit and withdrawal flows.                                                                                        |
| Same-Token Swap          | A 1:1 conversion between a native token and its corresponding stToken only.                                                                                   |
| PAXG Support             | PAXG is an active supported asset across deposit, swap, staking, and withdrawal flows.                                                                        |

For definitions of additional technical terms, see the Glossary in the Reference section.


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