simulate_scenario
Run Monte Carlo simulations to model expected premium and refunds for MEV sandwich risk, based on user-defined assumptions about frequency, loss, and deductible.
Instructions
Run a what-if Monte Carlo: model expected premium vs expected refund/loss over a horizon, given assumptions about sandwich frequency, average loss, and deductible. Returns a narrative + distribution.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| avg_loss_bps | No | Average sandwich loss in bps. Default 40. | |
| horizon_days | No | Horizon in days (≈ swaps). Default 30. | |
| notional_usd | Yes | Per-swap notional in USD. | |
| deductible_bps | No | Deductible in bps. Default 100. | |
| sandwich_freq_pct | No | Sandwich frequency as a percentage 0–100. Default 1.2. |