Pricing Spreads

The ABM uses a Multi-Layer Adaptive Spread Framework to dynamically price risk. As market danger increases, the ABM automatically widens the spread it charges to traders.

This protection scales dynamically based on real-time data:

• Real-Time Volatility Scaling: The ABM constantly monitors short-term market volatility. As volatility rises, the base spread charged to traders scales super-linearly. You earn more when the market moves faster.

• Market Regime Binning: To protect against flash crashes, the ABM classifies the market into discrete volatility states (Normal, Stressed, Extreme). When volatility crosses critical thresholds, sharp multipliers are instantly applied to the spread.

• Drawdown Protection: Volatility doesn't always equal loss, so the ABM ties its pricing directly to the actual real-time PnL of the LP Vault. If the pool experiences a drawdown, the ABM enters Defensive Modes; widening spreads further, shifting to Reduce-Only trading, and ultimately triggering a hard circuit breaker if strict safety thresholds are breached.