# Futures Convergence Strategy AI Agent Connect

> Identify arbitrage opportunities by monitoring the convergence of futures prices toward spot prices.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_FP5IOutr2F794ZZjCnZAFW4dDxIL5pFXZbjNe0s8/ai-agent-connect
- **Tags:** futures, arbitrage, basis, convergence, quantitative

## Description

This MCP server provides deterministic tools to exploit the predictable convergence of futures contracts toward their underlying spot prices. By analyzing the basis, convergence rate, and market liquidity, users can identify high-probability trade signals. Use `analyze_convergence_opportunity` to detect BUY or SELL signals based on basis thresholds and time to expiry, or `get_market_status` to monitor real-time basis and convergence rates.

## Tools

### get_market_status
Retrieve the raw current state of the relationship between spot and futures prices

### calculate_convergence_metrics
Compute the mathematical movement required for convergence and assess speed and risk

### analyze_convergence_opportunity
Determine if a specific futures contract presents a valid trade signal based on basis, time to expiry, and market trends

## Prompt Examples

**Prompt:** 
```
Analyze the current convergence opportunity for a contract with 25 days to expiry, a basis of 3%, and rising spot prices.
```

**Response:** 
```
The signal is BUY. The basis is 3%, which is above the 2% threshold, and with 25 days remaining, the contract is in the convergence phase.
```

**Prompt:** 
```
What is the current market status if the spot price is 100 and the futures price is 102 with 10 days left?
```

**Response:** 
```
The basis is 2% and the convergence rate is 0.2% per day.
```

**Prompt:** 
```
Check the convergence metrics for a basis of -3% and 15 days to expiry.
```

**Response:** 
```
The expected convergence is 3% and the delivery risk is low given the current timeframe.
```

## Frequently Asked Questions

**What is the basis in this strategy?**
The basis is the percentage difference between the futures price and the spot price relative to the spot price.

**How do I identify a BUY signal?**
A BUY signal is generated via `analyze_convergence_opportunity` when the basis is greater than 2%, days to expiry is less than 30, and the spot price is rising.

**What is the convergence phase?**
The convergence phase is the window of time leading up to expiration where the mathematical necessity of price convergence becomes most actionable.