Off-Chain Layer — The Darkpool Engine

The Engine is Darkpool’s middleware — a high-performance, monitored infrastructure stack responsible for the translation of algorithmic logic into executed orders.

a. Signal Fabric

  • Collects trade signals from internal models, curated algorithms, and AI-based predictors.

  • Converts incoming strategies (from our backend AI logic) into normalized JSON payloads.

  • Each Agent consumes its assigned feed, applying internal filters (SL/TP, leverage, volatility thresholds).

b. Risk Framework

The Engine’s policy layer evaluates every proposed trade against the vault’s parameters:

Parameter
Description
Typical Range

Daily Loss Stop

Hard cap on daily realized loss before suspension

5–7%

Lifetime Drawdown Cap

Maximum cumulative loss tolerance before vault halt

15–35%

Max Leverage

Maximum leverage allowed per Agent

3–10x

Exposure Control

Max % of vault capital allocated per trade

1–5%

Cooldown Enforcement

Delay between trade cycles

1–3 minutes

If a proposed trade violates any threshold, it’s rejected and logged. This framework ensures that every Agent operates within quantifiable, enforceable risk boundaries.

c. Execution Relayer

The relayer signs transactions with vault-owned keys and pushes them to the exchange’s API endpoints. Supports multiple order types:

  • Market / Limit / IOC / Post-Only

  • cancelByClid() and scheduleCancel()

  • Dynamic leverage updates

  • Batch order handling for multi-instrument Agents

Supported venues:

  • Binance (institutional API key relay)

  • Hyperliquid (future native integration)

  • Additional CEX/DEX integrations under roadmap Phase II

d. Dead-Man’s Switch

To prevent stale exposure, the Engine auto-cancels all open orders if no signal heartbeat is received within five minutes. If inactivity persists, vaults enter a suspended state until manually restarted by Guardian multisig.

e. Monitoring & Telemetry

A Grafana-based dashboard tracks:

  • PnL trends

  • Execution fills and latency

  • Risk ratio breaches

  • Fee accruals

  • API health Alerts automatically trigger vault pausing or Guardian intervention when anomalies occur.

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