FYOS Methodology
FYOS uses a clean-core v2 methodology — a conservative, trust-aware framework for evaluating crypto yield opportunities.
This section explains how FYOS works and how to interpret its outputs correctly.
Core Principles
1. Score Is Not Deployability
edge_value_score_v2 measures opportunity attractiveness.
edge_capacity_24h determines deployability.
A high-scoring opportunity can still be undeployable if structural capacity is missing.
2. Gross Is Not Realistic
Raw funding APR or gross basis spread overstates realistic returns.
FYOS applies reality adjustments (fees, slippage, decay, trust haircuts) before presenting actionable metrics.
3. Persistence Uses Deterministic Decay
Current persistence handling comes from deterministic decay, not from deprecated survivability-led math.
4. Observed Risk Is Part Of The Core
Downside interpretation uses observed risk evidence — historical data about actual outcomes.
5. Prescriptive Outputs Are Bounded
- Planner output is a bounded recommendation, not execution instruction
- Simulator output is scenario analysis, not forecast truth
- Reality output is an evidence surface, not a promise surface
Canonical Metrics
| Concept | Primary Metric | Status |
|---|---|---|
| Score | edge_value_score_v2 | Certified Primary |
| Deployability | edge_capacity_24h | Certified Primary |
| Persistence | decay_adjusted_return | Certified Primary |
| Downside | observed_risk_score | Certified Primary |
| Basis Return | model_adjusted_basis_apr | Certified Primary (Basis family) |
| Basis Capacity | dual_leg_capacity_usd | Certified Primary (Basis family) |
Methodology Topics
Scoring & Economics
- How FYOS Scores Opportunities — Understanding
edge_value_score_v2 - Funding Rate Model — Raw funding rate annualization
- Deterministic Decay — How persistence is modeled
Deployability & Capacity
- Deployability — Score vs deployability separation
- Capacity Model — Structural capacity semantics
Risk & Trust
- Observed Risk — Evidence-based downside interpretation
- Trust Layer — Reliability and qualification
Prescriptive Surfaces
- How To Read Planner — Bounded allocation recommendations
- Scenario Engine — What-if scenario analysis
- How To Read Reality — Evidence surface interpretation
Strategy Families
- Basis / Cash & Carry Methodology — Delivery futures methodology
- Basis vs Funding Comparison — Strategy family differences
Historical / Deprecated
- Deprecated Survivability — Why survivability was deprecated
Two Strategy Families
FYOS supports two complementary strategy families:
Funding Arbitrage
Captures funding rate payments on perpetual futures.
- Variable, ongoing returns
- Open-ended duration
- Primary metric:
decay_adjusted_return
Basis / Cash & Carry
Captures the spot-futures spread on delivery contracts.
- Fixed returns at entry (for hold-to-expiry)
- Expiry-linked duration
- Primary metric:
model_adjusted_basis_apr
Both families share the same trust-aware, reality-adjusted framework.
What Is Deprecated
The following are not part of current primary methodology:
- Survivability as primary score input
soft_capacity_usdas primary deployability truth- Old
edge_value_scoreas canonical ranker - Survivability-weighted economics
These may appear in archives, diagnostics, or compatibility paths but are not certified for primary product use.
Interpretation Cheat Sheet
| Signal | Meaning |
|---|---|
High edge_value_score_v2 + missing edge_capacity_24h | Attractive, not deployable |
bounded-grade coverage | Usable, but reduced authority |
| Planner output | Bounded recommendation |
| Simulator output | Scenario result, not prediction |
gross_basis_apr | Raw view, not realistic |
model_adjusted_basis_apr | Execution-aware basis view |
Philosophy
FYOS is designed as a pessimistic, trust-aware decision system.
The core belief:
Gross crypto yield is not the same as realistic deployable yield.
Therefore FYOS:
- Is conservative by default
- Avoids optimistic rescue logic
- Separates signal from deployability
- Exposes limitations explicitly
- Uses scenario tools as scenario tools, not as guarantees
This methodology creates a system you can reason about honestly.