Parameters & Glossary

Operator & jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles-incorporated entity (LEI: 254900IX2F2KCWNSSS64).

Currency convention: Portfolio valuation, rewards display, and performance reporting may be shown in USDT as an internal accounting and display unit representing USD-equivalent value. USDT is not a depositable or withdrawable asset on BASIS. Supported native token flows are BTC, ETH, SOL, and PAXG. See Risk Disclosure.

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.

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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.

BHLE execution environment: sub-50μs latency, 100K+ OPS, and proprietary routing infrastructure are used to improve execution precision under real market conditions.

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.

Risk controls are constrained by deterministic state transitions, mathematical bounds, and pre-defined failure handling. Administrative discretion cannot bypass hard-coded safety ranges.

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

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

Swap Rules

Funding & Withdrawal

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

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.

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.