# DeFi Options Strategy Engine AI Agent Connect

> Deterministic volatility trading signals for DeFi options protocols.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_ivuzn1veATXVF4WrFSmlpoNm8dFXPUjEAJlYek2V/ai-agent-connect
- **Tags:** options, volatility, defi, trading-signals, risk-management

## Description

This MCP server provides a deterministic decision engine for generating volatility-based trading signals. It connects AI agents to DeFi options protocols to evaluate if volatility is overvalued or undervalued. Using `analyze_volatility_regime`, agents can determine the IV rank and volatility signal. The `generate_trade_execution_plan` tool filters these signals against liquidity and catalyst constraints, while `calculate_risk_metrics` provides essential parameters like delta hedge and gamma exposure for position management.

## Tools

### analyze_volatility_regime
Evaluates the current volatility environment and determines the primary volatility signal

### calculate_risk_metrics
Computes the secondary risk parameters required for managing the position

### generate_trade_execution_plan
Determines the specific trade structure and filters signals based on liquidity and market catalysts

## Prompt Examples

**Prompt:** 
```
Analyze the current volatility regime with IV at 45%, min 10%, max 60%, straddle price 50, and expected move 40.
```

**Response:** 
```
The IV rank is 0.62, and since the straddle price is higher than the expected move, the volatility signal is SELL.
```

**Prompt:** 
```
Check if a BUY signal with IV rank 15, $50M liquidity, 500 open interest, and an upcoming earnings event is actionable.
```

**Response:** 
```
The trade is actionable as it meets the low IV rank, high liquidity, and catalyst requirements.
```

**Prompt:** 
```
Calculate the risk metrics for an option with underlying price 100, IV 0.30, 30 days to expiry, delta 0.5, gamma 0.02, and theta -0.05.
```

**Response:** 
```
The expected move is 2.74, the required delta hedge is -0.5, the gamma exposure is 0.02, and the daily theta decay is -0.05.
```

## Frequently Asked Questions

**How does the engine determine if volatility is expensive?**
The engine uses `analyze_volatility_regime` to calculate the IV rank. If the IV rank is above 80 and the straddle price exceeds the expected move, it generates a SELL signal.

**What safety filters are applied to trades?**
The `generate_trade_execution_plan` tool ensures SELL signals only trigger if IV rank > 70 and protocol liquidity > $10M, and BUY signals require IV rank < 30 and an upcoming catalyst.

**Can I calculate risk parameters for my position?**
Yes, you can use `calculate_risk_metrics` to obtain the delta hedge, gamma exposure, and theta decay for your specific option position.