# Pre-Event Volatility Crush AI Agent Connect

> Deterministic liquidity provision for capturing spreads during binary event volatility.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_RTVquSjJ1HnctlSIOda7PdDK2yZ9tHvYd3vvKhfi/ai-agent-connect
- **Tags:** volatility, binary-events, market-making, liquidity, risk-management

## Description

This MCP server provides tools to execute a deterministic liquidity provision strategy around binary economic events like CPI releases. By using `calculate_entry_parameters`, users can determine the exact timing and price levels to place limit orders on both Yes and No sides. The strategy aims to capture the spread during the volatility expansion phase. Users can then use `simulate_strategy_execution` to model financial outcomes including spread capture and maker fee rebates, or `evaluate_risk_exposure` to measure the effectiveness of toxic flow avoidance via the 1-minute cancellation window.

## Tools

### evaluate_risk_exposure


### simulate_strategy_execution


### calculate_entry_parameters


## Prompt Examples

**Prompt:** 
```
Calculate the entry parameters for a Yes price of 0.50 with 15 minutes until the event and a widening factor of 2.0.
```

**Response:** 
```
The entry time is 10 minutes before the event. The target spread is 0.20. The Yes limit price is 0.40 and the No limit price is 0.60.
```

**Prompt:** 
```
Simulate the execution with 1000 USD capital, a 50% fill rate, and a 2% maker rebate.
```

**Response:** 
```
The total spread capture is 100.00, total rebates are 10.00, and the net profit is 110.00.
```

**Prompt:** 
```
Evaluate the risk if 100 orders were placed and 2 were filled after the cancellation window.
```

**Response:** 
```
The toxic flow avoidance rate is 98% and the risk exposure score is 0.02.
```

## Frequently Asked Questions

**How does the strategy avoid losing money to informed traders?**
The strategy uses a strict 1-minute cancellation window before the event to avoid adverse selection, which can be measured using `evaluate_risk_exposure`.

**What information is needed to start the strategy?**
You need the current market price for the Yes outcome, the minutes remaining until the event, and the expected widening factor to use `calculate_entry_parameters`.

**Can I estimate my potential profits?**
Yes, by using `simulate_strategy_execution`, you can model net profit based on total capital, expected fill rates, and maker fee rebates.