NEO Trading Engine — Micro-Live Operational Readiness¶

Pre-session preparation checklist for first XRPL live execution. Complete all phases before Session 1. Designed for first-time XRPL live deployment.

Phase 1 — Wallet Setup¶

Step 1.1 — Choose wallet type¶

Use Xaman (formerly XUMM). Non-custodial, XRPL-native, hardware-secured keys, built-in trust line management. Do not use exchange wallets or any wallet where you don't control the seed.

Step 1.2 — Generate wallet¶

Download from official source only: xaman.app
Create a new wallet — do not import an existing seed for a live trading wallet
App will generate a 12 or 24-word seed phrase

Step 1.3 — Secure the seed (non-negotiable)¶

Write seed phrase on paper. Two copies. Store in separate physical locations.
Never photograph it.
Never type it into any device other than the wallet itself.
Never store it in cloud services, email, notes apps, or password managers.
Never share it with anyone or any software.
The seed phrase IS the wallet. There is no recovery without it.

What NOT to do¶

Do not use the same wallet for live trading and development/testing
Do not fund the wallet before the seed is secured
Do not store mainnet keys in plaintext config files — use environment variables, secrets file excluded from version control

Phase 2 — Funding and Reserves¶

Step 2.1 — Reserve requirements¶

XRPL locks XRP as reserve. Current requirements: - Base reserve: 2 XRP (permanently locked) - Owner reserve: 0.2 XRP per object (each trust line and open offer = 1 object)

Session 1 minimum locked: 1 trust line + 2 open offers = 3 objects × 0.2 + 2 base = ~2.6 XRP

Step 2.2 — Recommended funding¶

Fund with: reserves + trading float + buffer
Suggested: 10–15 XRP to start (~7–10 XRP available after reserves)
Acquire RLUSD separately for the RLUSD side of starting allocation

Step 2.3 — Keep buffer¶

Never commit all available XRP to orders. Keep at least 3–4 XRP uncommitted at all times.

Phase 3 — RLUSD Trust Line¶

Step 3.1 — Establish trust line¶

In Xaman: Settings → Trust Lines → Add Trust Line - Issuer: verify current RLUSD issuer address from Ripple's official documentation before use - Currency code: RLUSD - Limit: set high enough to cover intended balance (e.g., 1000)

Step 3.2 — Verify trust line active¶

In Xaman: RLUSD appears in asset list (even at 0 balance)
On XRPScan: search wallet address → Balances tab → RLUSD listed with trust line active

Step 3.3 — Confirm balance visibility¶

After funding RLUSD: - Balance visible in Xaman - Balance visible on XRPScan - Both match

Phase 4 — Balance Verification¶

Step 4.1 — Verify via Xaman¶

XRP available balance (excluding reserve)
RLUSD balance
No unexpected open offers

Step 4.2 — Verify via XRPScan (xrpscan.com)¶

Search wallet address
Check: XRP balance, RLUSD balance, trust lines, open offers

Correct starting state¶

XRP: enough for reserves + trading float
RLUSD: target starting allocation (~$50–75 for Session 1)
Trust line: RLUSD active, visible, limit set
Open offers: zero
Network: mainnet

Phase 5 — Minimum Viable Order Size Test¶

Perform manually at least 24 hours before Session 1.

Step 5.1 — Place a small offer manually¶

Using Xaman or DEX interface (xmagnetic.org or similar): - Place a buy offer: ~$3 RLUSD worth of XRP priced near mid, not aggressive (do not cross the spread — a marketable order fills immediately and doesn't test order book placement) - Record: transaction hash, offer sequence number

Step 5.2 — Confirm offer on book¶

XRPScan → wallet address → Open Offers tab
Offer appears with correct size and price

Step 5.3 — Cancel the offer¶

Cancel via Xaman or DEX interface
Confirm on XRPScan: offer no longer in Open Offers

Step 5.4 — Evaluate and decide sizing¶

Result	Action
Offer placed, appeared, cancelled cleanly at $3	Proceed with $3–5 per-order sizing
Offer rejected or rounding issues at $3	Retest at $5–10
Rejection at $5–10	Do not proceed — investigate minimum constraints first

Phase 6 — Pre-Flight Validation¶

Complete immediately before starting the engine for Session 1.

Critical Failure Points¶

Failure	Cause	How to catch it
Seed compromised	Stored digitally, photographed, or entered online	Prevention only — no recovery
Wrong network	Engine pointed at testnet	Pre-flight node URL check
Orphaned offers	Engine crash without cleanup	XRPScan open offers check before and after every session
Insufficient reserve	Too little XRP uncommitted	Reserve calculation before funding
Trust line missing	RLUSD not configured	Balance verification step
Order rejection at $3–5	Below minimum viable offer	Manual test (Phase 5) catches this
Rounding / precision issues	XRP denominated in drops (1 XRP = 1,000,000 drops)	Manual test (Phase 5) catches this
Stale connectivity	Node disconnected mid-session	Ledger index monitoring during session
Engine state / on-chain mismatch	Crash or connectivity loss	Always verify on-chain after any unexpected stop
Orphaned offers after connectivity loss	Engine goes down without cancelling orders	Immediately verify and cancel all open offers on XRPScan before any reconnect or restart attempt — do not rely on engine state

Minimum Order Size Strategy¶

XRP is denominated in drops (1 XRP = 1,000,000 drops). Offers must be in whole drops.
At current prices (~1.34–1.35 XRP/RLUSD), $3 RLUSD ≈ 2.2 XRP — well above dust thresholds.
Primary sizing: $3–5 per side
Fallback sizing: $5–10 per side (if primary rejected)
If fallback also fails: do not proceed until constraint is understood

The manual test (Phase 5) is the only reliable way to confirm viability at current prices. Do not skip it.

Notes¶

Reserve requirements can change via XRPL governance (fee voting). Verify current values at xrpl.org before funding.
RLUSD issuer address must be verified against Ripple's official documentation. Do not rely solely on this document.
Manual order test consumes ~0.00001 XRP per transaction in fees. Expected and negligible.
Never store seed phrase or private key in a plaintext config file. Use environment variables. Add secrets file to .gitignore before any commit touching live credentials.
Do not assume engine state reflects on-chain state after any unexpected stop — always verify on XRPScan.

Authored: 2026-04-10. Complete all phases before Session 1. Do not skip Phase 5 (manual order test).