Doc Ref FP-V3-2026-06 · Ekantik Capital Advisors LLC · Companion to FP-V2-2026-05 (linear track)
This protocol governs the Convexity Experiment — a publicly-conducted, operator-capital live trading exercise on long short-dated options (0–7 DTE) on SPX and single-stock underlyings. It is the convex-instrument companion to the linear-track protocol (FP-V2-2026-05) and runs on segregated capital with independent triggers, gates, and Discord journal.
Realized expectancy across rolling 100 qualified trades drops to $0 per trade — the edge becomes net-negative.
Evaluated continuously; provisional binding from 80 trades, full binding at 100. A qualified trade is one entered and exited under all operative documented rules, unaffected by execution error, platform malfunction, or extraordinary market event. R = premium paid at entry on a single long-option position.
Immediate stand-down. New entries → zero size next session. Open positions close at next defined exit per the original trade plan. Strategy moves to research-only. Public notification in the Convexity Discord journal within 24 hours.
(a) Fresh out-of-sample test of ≥ +$50/trade over 50 qualified trades (paper / prop). (b) Written re-derivation of the structural cause of decay. (c) 48-hour cool-off after both.
Pre-committed automated step-down rules. No exceptions. No renegotiation.
On convex instruments, revert is regime-response: when an entire level’s buffer is given back, the most likely structural explanation is a condition shift, not a single bad trade.
Every qualified trade receives an operator attribution tag — H2 (process breached) or H3 (variance) — logged before the next entry, against a pre-decision log. H3 is the resting attribution; H2 is the exception. H1 (edge failed) is not an operator attribution and is never applied to a single trade. H1 is system-derived: declared solely by the Expression Gate’s rolling-100 verdict, subject to the Binding Interpretation Rule.
Breach: tag missing at next entry · tag inconsistent with pre-decision log · H1 hand-applied. Threshold: zero breaches inside rolling 100 trades. Verification: witness audits monthly.
Zero unannounced or witness-uncountersigned protocol modifications inside the rolling window, per the four-step modification protocol (48h cool-off · written structural justification · witness countersignature · 24h public disclosure). Threshold: binary — zero breaches, period.
Pre-committed daily filings before market open, including scaling-rules log bidirectional (doublings AND reverts both watched). Threshold: ≥ 95% completion across rolling 30 trading days. Verification: witness reviews monthly.
| Tier | Trigger | Response | Resume |
|---|---|---|---|
| T1 Logged breach | Single isolated breach of Criterion 01 or 03. | Discord entry within 24h. Witness review within 7 days. Counter resets. | Immediate; counter restarts at zero. |
| T2 Conditions reduced | 3+ breaches of 01/03 in rolling 30 trades, or sustained Criterion 03 below 95%. | Position cut to minimum (1 contract, no scaling) for next 20 qualified trades. Daily filing under witness oversight. | 20 clean minimum-size trades + witness countersignature. |
| T3 Full cessation | Any Criterion 02 breach, or a second T2 inside rolling 100 trades. | Immediate cessation; new entries → zero next session. Witness convenes structural review. | Countersigned remediation artifact + 30-day calendar gap + 20 minimum-size trades. |
Calibration: first 30 days post-launch (6/30/2026) are observation-only while baseline adherence is established; the Fidelity Layer is binding from day 31. The Expression Layer is binding from day one.
Expression-Gate firings during an active Fidelity T2/T3 breach are interpretation-suspended pending remediation. The architecture refuses to declare an edge falsified from data generated during a fidelity breach.
The named witness for this protocol is Manish Dharod (default, pending confirmation), holding authority over modification approvals, breach tier classifications, and Stage-1 resumption events. Monthly audit findings published to witness-audits-convex.json.
Hiren Desai · Founder & Chief Investment Officer · Ekantik Capital Advisors LLC
DRAFT v3.0. By signature, the operator attests this protocol is derived prior to the first live fill on 6/30/2026 and is hereby locked as the governing operational charter for the Convexity Experiment. Witness signature attests only that the modification protocol was followed.