Core Philosophy

Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: 254900IX2F2KCWNSSS64).

BASIS is built around three non-negotiable constraints. Together they form a design constraint triangle. If one is optimized while the others are ignored, the result is not production-grade infrastructure.

1) Market neutral by construction

BASIS does not rely on directional market calls. It targets structural alpha capture from:

• cross-venue price dislocations

• basis and funding differentials

• liquidity fragmentation

• inventory and routing inefficiencies

Market neutrality lowers directional exposure, but it does not remove risk. It transforms directional risk into:

• execution risk

• funding risk

• liquidation risk

• venue and counterparty risk

• settlement risk

The platform treats this explicitly. Reliability comes from acknowledging these risks, measuring them, and constraining them before capital is deployed. This operating model is consistent with an institutional-grade control environment maintained under active ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 certified management systems.

2) Execution first

In structural alpha strategies, theoretical edge is usually small and time-sensitive.

Therefore:

• a 20 bps spread is irrelevant if slippage consumes 30 bps

• a positive funding profile is irrelevant if hedging fails during volatility

• a DEX-CEX spread is irrelevant if gas costs and execution precision losses dominate

Execution first means:

• slippage, latency, and routing quality are part of the strategy itself

• trades are conditioned on depth, venue health, and expected fill quality

• the system is allowed to refuse trades when expected value is negative

• deterministic execution rules are enforced before exposure is opened

This philosophy is also reflected operationally. Consistent service delivery, controlled change processes, and security governance are essential when execution quality is part of the product itself. BASIS treats these as part of its institutional-grade operating baseline and maintains them under active, publicly verifiable ISO-certified management systems.

BHLE execution layer

BASIS uses BHLE, a proprietary routing and execution infrastructure designed for:

• sub-50 μs decision latency

• 100K+ OPS throughput

• venue-aware path selection

• low-variance execution across fragmented liquidity

• deterministic routing under mathematical risk constraints

The goal is not maximum activity. The goal is execution precision.

Practical EV gate

A simplified eligibility rule can be written as:

$$Edge \ge Fees + Slippage\_Bound + Latency\_Penalty + Safety\_Margin$$

If this condition does not hold under conservative assumptions, the strategy does not run.

if expected_edge < total_execution_cost + safety_margin:
    reject_trade()

3) Capital preservation

Capital preservation does not mean zero risk. It means the system is designed to remain inside defined risk states and degrade safely under stress.

This includes:

• conservative capital deployment

• explicit stop conditions

• controlled unwind procedures

• liquidity buffers for withdrawals

• state machine risk controls with deterministic transitions

Capital preservation also depends on operational discipline outside the strategy layer. Security controls, incident handling, and service management processes matter because a resilient arbitrage platform must protect both capital and continuity under changing conditions. BASIS supports this with active ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 certifications held by BASIS DIGITAL INFRASTRUCTURE LTD.

Protective states

Control	Function
BSCB	Triggers when loss probability or structural instability is detected, including at very low thresholds
DMM	Enters a protective pause state, reduces or closes exposure, analyzes conditions, and resumes only when stability criteria are restored

This is why rewards may slow or pause during stressed conditions. A platform that never pauses usually has not formalized failure modes.

4) How this philosophy appears in the product

Product area	Design expression
Strategy engine	Diversification across independent structural alpha sources
Risk engine	Deterministic pre-trade checks, venue health gating, and state machine controls
Wallet model	Funding Wallet holds native tokens for deposit and withdrawal. Staking Wallet holds stTokens for staking and reward accumulation
Deposit model	BTC deposits use a BASIS-assigned address unique to each account. ETH, SOL, and PAXG deposits use a connected Web3 wallet such as MetaMask
Swap model	Same-token 1:1 swaps only: BTC→stBTC, ETH→stETH, SOL→stSOL, PAXG→stPAXG
Fee model	Deposit 0%, Withdrawal 0.05%, Swap 0.01%
Reward model	Rewards accumulate in real time as the same stToken in the Staking Wallet
Fixed pools	Unstake is available only after the lock-up period ends. Early exit is not supported
Unstake behavior	Full-position unstake only. At maturity, the claimable amount is auto-credited to the Staking Wallet as the same stToken
Booster design	14D +10%, 30D +20%, 90D +50%, 180D +100% (2x)
Referral	Contribution-aligned referral network tied to realized participation
Operational assurance	Operated by BASIS DIGITAL INFRASTRUCTURE LTD under active, publicly verifiable ISO/IEC 27001:2022 and ISO/IEC 20000-1:2018 certified management systems

🛡️ Operational baseline:

• BTC minimum deposit is 0.0001 BTC

• BTC withdrawals usually complete in 30 minutes to 1 hour

• ETH, SOL, and PAXG withdrawals usually complete in 1 to 6 minutes

• USDT is used for internal display and accounting only

• BASIS DIGITAL INFRASTRUCTURE LTD holds active certifications that support the platform's institutional-grade operating model:

  • ISO/IEC 27001:2022: Active. Last updated: March 27, 2026. Public verification

  • ISO/IEC 20000-1:2018: Active. Public verification

  • Certified entity record: BASIS DIGITAL INFRASTRUCTURE LTD

5) When principles conflict

If execution opportunities expand while market stability deteriorates, BASIS prioritizes survivability over activity.

1

Evaluate expected value

Confirm that projected edge remains positive after fees, slippage bounds, latency penalties, and safety margins.

2

Validate system state

Confirm venue health, routing quality, liquidity conditions, and state-machine eligibility.

3

Commit or pause

If any constraint fails, reduce exposure or pause strategy activation. Resume only after deterministic criteria are restored.

Design priority

• preserve capital first

• capture structural alpha second

• increase activity only when risk states allow it

User-visible outcome

The remainder of the documentation translates these principles into architecture, wallet operations, staking mechanics, and control systems across Stake, Assets, Referral, Support, and Account within the same institutional-grade and internationally certified operating model.