# Key Concepts

{% hint style="info" %}
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 defines the minimum vocabulary required for the rest of the documentation. BASIS is a constrained execution system built for structural alpha capture through deterministic routing, math-based limits, and state-machine risk controls.

## 1) Market neutral

A market-neutral strategy seeks to reduce sensitivity to the direction of the underlying asset.

Typical example:

* spot long + derivative short, which reduces delta exposure

Market neutrality removes one major risk, directional exposure, but introduces others:

* funding risk
* basis risk
* execution risk
* liquidation risk
* venue risk

## 2) Execution first

Execution quality determines whether a theoretical spread becomes realized structural alpha.

Execution First means:

* low latency from signal to order
* conservative slippage limits
* order slicing to reduce market impact
* hedge completion requirements, or stop conditions if completion fails
* deterministic routing under predefined constraints

In BASIS, execution is not an afterthought. It is the primary control surface for risk and return.

## 3) Capital preservation

Capital preservation means optimizing for survival under stressed conditions.

Core principles:

* conservative leverage use
* strict stop conditions
* controlled unwind protocols
* venue diversification
* liquidity buffers for withdrawals
* state escalation when market or infrastructure conditions degrade

This is enforced through predefined system states, not discretionary decision-making.

## 4) Wallet model, BIVB, and stTokens

BASIS separates operational balances into two wallets:

| Wallet         | Asset type                               | Primary actions                    |
| -------------- | ---------------------------------------- | ---------------------------------- |
| Funding Wallet | Native assets, BTC / ETH / SOL / PAXG    | Deposit, withdraw, same-token swap |
| Staking Wallet | stTokens, stBTC / stETH / stSOL / stPAXG | Stake, earn rewards, unstake       |

The BASIS Iso-Value Bridge (BIVB) converts native assets in the Funding Wallet into staking assets in the Staking Wallet.

Important rules:

* conversion is same-token only
* conversion is 1:1 in quantity, not fiat value
* no cross-asset swap is supported

### Supported 1:1 swap pairs

| Native asset | Staking asset | Conversion rule   |
| ------------ | ------------- | ----------------- |
| BTC          | stBTC         | 1 BTC → 1 stBTC   |
| ETH          | stETH         | 1 ETH → 1 stETH   |
| SOL          | stSOL         | 1 SOL → 1 stSOL   |
| PAXG         | stPAXG        | 1 PAXG → 1 stPAXG |

{% hint style="info" %}
**Asset Flow**

* **Funding Wallet** holds: BTC, ETH, SOL, PAXG
* Swap 1:1 via BIVB (same-token only, no cross-asset swaps)
* **Staking Wallet** holds: stBTC, stETH, stSOL, stPAXG
* Stake stTokens to begin reward accumulation
  {% endhint %}

{% tabs %}
{% tab title="BTC deposit" %}
Copy your BASIS-assigned BTC deposit address and send BTC to that address.

Key points:

* each account receives a unique BTC deposit address
* no Web3 wallet is required
* no minimum deposit
  {% endtab %}

{% tab title="ETH / SOL / PAXG deposit" %}
Connect a supported Web3 wallet, such as MetaMask, and deposit the matching native asset.

Key points:

* deposit the same native asset you intend to hold or swap
* ETH, SOL, and PAXG deposits use wallet connection flow
* PAXG support is live and active
  {% endtab %}
  {% endtabs %}

{% hint style="warning" %}
USDT is display-only on BASIS. It may appear in reporting, portfolio views, or accounting summaries, but it cannot be deposited, withdrawn, or swapped.
{% endhint %}

## 5) Staking mechanics

Rewards accumulate in real time and are denominated in the same stToken as the staked position.

Examples:

* stBTC staking earns stBTC
* stETH staking earns stETH
* stSOL staking earns stSOL
* stPAXG staking earns stPAXG

{% stepper %}
{% step %}
Fund the Funding Wallet with BTC, ETH, SOL, or PAXG.
{% endstep %}

{% step %}
Use BIVB to convert the native asset into the matching stToken on a 1:1 quantity basis.
{% endstep %}

{% step %}
Stake the stToken in an eligible pool from the Stake section.
{% endstep %}

{% step %}
Rewards accumulate in real time in the Staking Wallet as the same stToken.
{% endstep %}

{% step %}
When the position becomes eligible for exit, unstake the full position. After the mandatory 7-day unstaking buffer, the claimable amount is auto-credited to the Staking Wallet as the same stToken.
{% endstep %}
{% endstepper %}

### Booster schedule

| Booster term | Reward boost |
| ------------ | ------------ |
| 14D          | +10%         |
| 30D          | +20%         |
| 90D          | +50%         |
| 180D         | +100% (2×)   |

### Pool and unstake rules

| Rule             | Description                                                                                        |
| ---------------- | -------------------------------------------------------------------------------------------------- |
| Fixed pools      | Unstake only after the lock-up period ends, subject to a mandatory 7-day unstaking buffer          |
| Early exit       | Not available                                                                                      |
| Unstake size     | Full position only, auto-MAX                                                                       |
| Reward crediting | Auto-credited to the Staking Wallet as the same stToken after the mandatory 7-day unstaking buffer |

### Operational fees and timing

| Action                           | Standard         |
| -------------------------------- | ---------------- |
| Deposit fee                      | 0%               |
| Swap fee                         | 0.01%            |
| Withdrawal fee                   | 0.05%            |
| BTC withdrawal time              | 10 to 60 minutes |
| ETH / SOL / PAXG withdrawal time | 1 to 10 minutes  |

Note: Withdrawal times listed above apply to withdrawals from the Funding Wallet. Unstaking from fixed pools requires an additional mandatory 7-day buffer before these withdrawal times apply.

## 6) BHLE, the execution engine

BHLE, the Base58 Hyper-Latency Engine, powers BASIS execution.

Core properties:

* sub-50μs internal response latency
* 100,000+ OPS throughput
* proprietary routing infrastructure across venue and chain interfaces
* deterministic execution with pre-trade state validation
* logical asset isolation and controlled signer boundaries
* N+1 bare-metal failover
* connectivity across BTC settlement flows, SVM, and EVM environments

BHLE is designed to convert model output into executable action under strict constraints. Trust is built through repeatable behavior, bounded state transitions, and verifiable operational rules, not discretionary intervention.

## 7) BQAE and BOVE

### BQAE

BQAE, the BASIS Deterministic Arbitrage Engine, captures cross-venue structural alpha through:

* signal scanning
* opportunity filtering
* deterministic execution
* settlement validation

### BOVE

BOVE, the BASIS Omni-Vector Engine, coordinates multiple strategy pipelines across the broader strategy matrix.

Together, these systems focus on execution precision and portfolio-level coordination.

## 8) System states, Normal, BSCB, and DMM

BASIS uses explicit state-machine controls.

| State  | Meaning                         | Typical action                                             |
| ------ | ------------------------------- | ---------------------------------------------------------- |
| Normal | Strategies are eligible to run  | Standard execution                                         |
| BSCB   | Protective intervention state   | Stop, close, isolate, or restrict                          |
| DMM    | Maintenance and diagnostic mode | Pause trading, run RCA, resume only after stability checks |

This state architecture is central to risk control. When inputs violate predefined thresholds, the system changes state rather than stretching assumptions.

## 9) Trinity, claim-based referral logic

Trinity is a contribution-aligned referral network. It is not a sign-up reward model.

Trinity rewards are generated when:

* downstream users stake
* rewards accrue
* a claim event occurs

This design aligns rewards with real platform activity and discourages inactive or abusive referral trees.

## 10) Dashboard structure

The primary dashboard sections are:

| Section  | Purpose                                                                             |
| -------- | ----------------------------------------------------------------------------------- |
| Stake    | View pools, boosters, and active staking positions                                  |
| Assets   | Manage Funding Wallet and Staking Wallet balances, swaps, deposits, and withdrawals |
| Referral | View Trinity referral activity and contribution-based rewards                       |
| Support  | Access operational help and issue handling                                          |
| Account  | Manage account settings and security controls                                       |

{% hint style="success" %}
Key takeaway: BASIS is a system, not a bot. The edge comes from deterministic execution, math-constrained strategy design, and disciplined operational controls.
{% endhint %}


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