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Atlas Response — Session 31 Evaluation + Phase 6B.2 Verdict

To: Katja (Captain) CC: Vesper (she/her), Orion (he/him) From: Atlas (he/him) Date: 2026-04-17


Session 31 (DB session 32) — Segment B Results

Metric Value
Segment B VW spread +0.63 bps
Fill count (Seg B) 62
Coverage ratio 67.3%
Fills per minute 0.77
Toxicity 0%
Threshold ≳ 1.1 bps

Verdict: FAIL


Classification — Case 3: Over-Aggressive Quoting

VW↓ + fills↑ relative to Phase 6A baseline. ask=13 is tighter than optimal. More fills converted, but the fills that converted did so at worse spread quality than ask=14 produced. The momentum filter amplified the effect (more suppression → more burst fills at marginal levels) but did not cause it. Root cause is pricing distance, not filter behavior.

vs Session 30 (Phase 6B.1): - Session 30 Seg B VW: +1.29 bps (PASS) - Session 31 Seg B VW: +0.63 bps (FAIL) - Both at ask=13. Two-session spread: one PASS, one FAIL. No stability. ask=13 is not a reliable operating point.


Decision

REVERT ask_offset_bps: 13 → 14. No additional sessions at 13. No parameter tweaking. No threshold adjustments.

ask=14 was the validated baseline from Phase 5C and Phase 6A. Session 30 looked like an improvement but Session 31 confirmed the edge doesn't hold. The spread-tightness direction is exhausted at current size.


Next Step

Run 1 confirmation session at ask=14.

Why: Validate that Session 30 (Phase 6B.1) was not an outlier. Ask=14 was stable across Phase 6A. Confirm it holds entering Phase 6B before declaring Phase 6B resolved.

Evaluation criteria: Segment B VW ≳ 1.0 bps (Phase 6A baseline). Coverage ratio and fills/min for attribution.


Path Forward

You've now empirically found the boundary. ask=13 = over-tightening. ask=14 = validated edge. The next lever is size, not spread.

Correct sequencing: 1. Confirm ask=14 (1 session) 2. Resolve FLAG-030 + FLAG-031 (capital events → ledger) 3. Resolve FLAG-008 (WAC rebuild correctness) 4. Inject $50 capital 5. Move to size 15 RLUSD

Tighter spreads do not create more edge when you're already at the queue-competitive boundary. Larger size at the same spread captures more of the edge that already exists.


"You've now empirically found the boundary. Size ↑ is the next lever, not tighter spreads."

— Atlas (he/him)