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fx_interest-rate-parity

Read-onlyIdempotent

Compute covered or uncovered interest rate parity for FX pairs. Detect arbitrage by comparing implied forward rate with actual forward rate.

Instructions

Interest rate parity calculator with arbitrage detection.

Use when computing covered/uncovered interest rate parity for FX pairs. Provide domestic rate, foreign rate, and spot rate. Returns: theoretical forward rate, parity-implied rate, and arbitrage opportunity if any.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
spot_rateYesCurrent spot exchange rate
time_yearsNoTime horizon in years
parity_typeNoParity type: covered or uncoveredcovered
foreign_rateYesForeign interest rate (annualized)
domestic_rateYesDomestic interest rate (annualized)
actual_forwardNoActual forward rate for arbitrage detection
Behavior4/5

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

Annotations already indicate readOnlyHint and idempotentHint, and the description adds return value details (forward rate, parity-implied rate, arbitrage) without contradicting annotations.

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?

Two sentences, front-loaded with purpose and immediate value, no redundant information.

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

Completeness5/5

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

Given full schema coverage and annotations, the description provides complete context: what, when, inputs, and outputs.

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

Parameters3/5

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

Schema has 100% coverage with parameter descriptions; the description lists required parameters but adds no extra meaning 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?

The description clearly states it is an interest rate parity calculator with arbitrage detection for FX pairs, distinguishing it from sibling tools like fx_forward-rate or fx_carry-trade.

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?

It specifies when to use (computing covered/uncovered interest rate parity) and lists required inputs, but does not explicitly mention when not to use or compare to alternatives.

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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