Files
cross-chain-pmm-lps/docs/07-mesh-reflexivity.md
2026-02-26 04:40:35 -08:00

15 lines
781 B
Markdown

# Mesh Reflexivity (Risk Controls)
If the bot is active across many pools, feedback loops can occur (e.g. bot buys in one pool, sells in another, churns fees, moves price).
## Controls to prevent reflexivity
1. **Global per-token trade budget** per time window — cap total volume per token across all pools.
2. **Minimum improvement threshold** — do not trade unless δ improves by X bps net of fees.
3. **Cooldowns per pool** after intervention — avoid rapid repeated trades on the same pool.
4. **Priority order** — fix **HUB pool first**, then others; avoid circular arbitrage across quotes.
## Policy memo
These controls should be documented in operational playbooks and enforced in bot code (v2). See [../spec/bot-state-machine.md](../spec/bot-state-machine.md).