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derivatives_volatility-surface

Read-onlyIdempotent

Construct an implied volatility surface from market data, providing interpolated IV, skew metrics, term structure, and smile parameters.

Instructions

Build implied volatility surface from market data.

Use when constructing an implied volatility surface from market data. Provide arrays of strikes, expiries, and IV values. Returns: interpolated IV surface, skew metrics, term structure, and smile parameters.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
spotYesCurrent spot price
market_dataYesArray of implied vol data points
interpolationNoSurface interpolation methodlinear
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already indicate readOnly and idempotent. Description adds that it returns interpolated surface, skew, term structure, smile parameters, which gives the agent insight into the output. No description of side effects or prerequisites beyond the inputs.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Extremely concise: two sentences plus a bullet-like list of returns. Every sentence adds value. No redundancy.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a tool without output schema, the description adequately lists the main outputs. It covers inputs and purpose. However, it lacks edge cases or guidance on data quality. Given the tool's moderate complexity, it is mostly complete.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%, so parameters are documented. Description summarizes that inputs are arrays of strikes, expiries, and IV values, which aligns with the schema. It adds context by linking parameters to the overall goal, but does not add new details beyond the schema.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

Clearly states it builds an implied volatility surface from market data. Uses specific verb 'Build' and identifies the resource. Distinguishes from siblings like options_implied-vol by mentioning surface, skew, term structure, smile.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Provides explicit usage context: 'Use when constructing an implied volatility surface from market data.' However, no mention of alternatives or when not to use this tool compared to siblings like options_implied-vol or derivatives_option-chain-analysis.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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