AlphaZero Labs

LAB PAPER

LAB PAPER

Market making

PAPER

100k paper · Avellaneda and Stoikov 2008 · Hyperliquid BTC and ETH perps · 10s quoting tick on a Durable Object · six desk roles as code · Polymarket, dYdX and Uniswap as labeled paper stubs · not the funded 50k book

Market making paper desk. Quotes refresh every 10 seconds.

Equity totale $100,000.00 waiting first tick
PnL $0.00 vs $100,000 start
Cash - start + signed fills - fees
Quotes - HL names live · 10s tick
Kill - 5% of allocation from peak, start or day

Equity totale

Waiting for first snapshot

Quoting

role 1 of 6 · quotes/current.json

No quote yet. The desk writes quotes/current.json every 10 seconds once armed.

Inventory

role 2 of 6 · inventory/state.json

Flat. No paper inventory.

Risk

role 3 of 6 · risk/state.json · no negotiation

No risk state yet.

Rules: quote clips of 10% of the 100k allocation, soft inventory 5 clips (50%), hard 10 clips (100%) per name, kill only when the allocation is exhausted (Polymarket stub: 10% of 500, 100 contracts, widen above 50), widen 3x if 30s realized vol is above 3x the rolling estimate, full pull above 6x for 60s, hedge to the soft band when inventory leaves the hard band. Operator sentences tighten any of these.

Reconciliation

role 4 of 6 · recon/last.json · every 30s

No reconciliation yet.

Microstructure and macro

on demand

Microstructure

role 5 of 6 · microstructure/live.json

Our half-spread (bps) against the Hyperliquid BBO spread (bps). Competing quote is a PROXY: HL L2 does not name market makers.

No book yet.

Macro filter

role 6 of 6 · macro/state.json

Active window
none
Rule
pull quotes 15 min on material event
Live X / news spine
waiting for the desk file

No macro event on the paper bus.

Fills

0

No paper fills yet.

Venues

HL live · three labeled paper stubs

Venue Data Names Alloc Kill Inventory unit

Snapshots

0

No snapshot yet. The 4h cron only copies desk state into history; it never quotes.

Paper educational desk from Avellaneda and Stoikov, High-frequency trading in a limit order book, Quantitative Finance 8(3), 2008. Reservation r = s - q * gamma * sigma^2 * (T-t). Half-spread delta = gamma * sigma^2 * (T-t) + (2/gamma) * ln(1 + gamma/kappa). Bid and ask sit around r; widening rules multiply delta and are shown as labeled multipliers. gamma, kappa and T-t are paper defaults, not calibrated. sigma is the HL 1h mid-return window converted to price vol. Missing book or vol pulls that name. Maker fee 0, simulated hedges pay the HL taker 4.5 bps. Cash is start plus signed fills minus fees; resting quote notional is never reserved. Kill: 5% of allocated paper capital from peak, start or the UTC day start, then PULL_ALL until an owner GO flag. The quoting tick is 10 seconds because this runs on Cloudflare Workers Free; a paid plan could go faster. Polymarket, dYdX and Uniswap are paper adapters on labeled stub tapes: observed, never quoted, never filled. No Hyperliquid orders. No Sharpe. Not the funded 50k book on /book. Lab hub: /lab.