{
  "$schema": "https://json-schema.org/draft/2020-12/schema",
  "description": "Simulation-only capital efficiency policy for Chain 138/cW PMM treasury risk modeling. This is not a live leverage or mint/redemption contract configuration.",
  "version": "1.0.0",
  "updated": "2026-04-27",
  "defaults": {
    "paths": 1000,
    "epochs": 365,
    "seed": 138001,
    "initialCapital": 1000000,
    "alpha": 0.7,
    "leverage": 2,
    "spreadBps": 35,
    "volumeEfficiency": 2,
    "pmmK": 0.1,
    "liquidityTargetUnits": 1000000
  },
  "parameterBands": {
    "alphaBalanced": [0.65, 0.75],
    "alphaYieldDominant": [0.75, 0.9],
    "leverageSafe": [1, 1],
    "leverageTarget": [2, 3],
    "leverageUnstableAbove": 4,
    "spreadCompetitiveBps": 10,
    "spreadTargetBps": [30, 50],
    "spreadVolumeRiskCeilingBps": 100,
    "volumeEfficiencyPassive": 1,
    "volumeEfficiencyActive": [2, 4],
    "volumeEfficiencyHighlyOptimizedAbove": 5
  },
  "treasury": {
    "yieldRatePerEpoch": 0.00035,
    "volatilityDragLambda": 0.35,
    "marketMakingScale": 0.04
  },
  "volatilityProcess": {
    "sigma0": 0.03,
    "sigmaBar": 0.03,
    "kappa": 0.08,
    "eta": 0.01
  },
  "pegDynamics": {
    "p0": 1,
    "beta": 0.25,
    "imbalanceStd": 0.01,
    "arbLiquidityCoefficient": 0.65
  },
  "risk": {
    "minExternalLiquidityPct": 0.2,
    "maxLtvBps": 6500,
    "hardMaxLtvBps": 7500,
    "liquidationLtvBps": 8000,
    "hardMaxLeverage": 4,
    "liquidationLossFraction": 0.08,
    "sigmaCrit": 0.08,
    "throttleLeverageMultiplier": 0.7,
    "throttleAlphaMultiplier": 0.9,
    "throttleSpreadBps": 50,
    "maxSpreadBps": 100,
    "circuitBreakerSpreadBps": 100,
    "pegCircuitBreakerBps": 200,
    "collateralVolatilityHaircut": 0.5,
    "bankRunRedemptionFeeBps": 100
  },
  "gates": {
    "maxDeployableLeverage": 3,
    "maxLiquidationProbability": 0.02,
    "maxDrawdownP95": 0.25,
    "maxPegDeviationFrequency": 0.05,
    "maxExternalLiquidityFloorViolations": 0
  },
  "optimizer": {
    "paths": 250,
    "maxCandidates": 250,
    "topN": 10
  },
  "liveExecutionGuard": {
    "status": "simulation_only",
    "requiresBeforeContractWork": [
      "smart_contract_audit_engagement",
      "governance_approval",
      "risk_dashboard",
      "operator_runbook",
      "treasury_liquidity_commitments"
    ],
    "auditEngagementEvidence": null,
    "governanceApprovalEvidence": null,
    "riskDashboardEvidence": null,
    "operatorRunbookEvidence": null,
    "treasuryLiquidityCommitmentEvidence": null
  }
}