mev-beta/orig/pkg/validation/price_impact_validator_test.go

package validation

import (
	"math/big"
	"testing"
)

func TestDefaultPriceImpactThresholds(t *testing.T) {
	thresholds := DefaultPriceImpactThresholds()

	tests := []struct {
		name     string
		value    float64
		expected float64
	}{
		{"Low threshold", thresholds.LowThreshold, 0.5},
		{"Medium threshold", thresholds.MediumThreshold, 2.0},
		{"High threshold", thresholds.HighThreshold, 5.0},
		{"Extreme threshold", thresholds.ExtremeThreshold, 10.0},
		{"Max acceptable", thresholds.MaxAcceptable, 15.0},
	}

	for _, tt := range tests {
		t.Run(tt.name, func(t *testing.T) {
			if tt.value != tt.expected {
				t.Errorf("%s = %v, want %v", tt.name, tt.value, tt.expected)
			}
		})
	}
}

func TestCategorizePriceImpact(t *testing.T) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())

	tests := []struct {
		name          string
		priceImpact   float64
		expectedLevel PriceImpactRiskLevel
	}{
		{"Negligible impact", 0.05, RiskLevelNegligible},
		{"Low impact", 0.3, RiskLevelLow},
		{"Medium impact", 1.0, RiskLevelMedium},
		{"High impact", 3.0, RiskLevelHigh},
		{"Extreme impact", 7.0, RiskLevelExtreme},
		{"Unacceptable impact", 20.0, RiskLevelUnacceptable},
	}

	for _, tt := range tests {
		t.Run(tt.name, func(t *testing.T) {
			result := validator.ValidatePriceImpact(tt.priceImpact)
			if result.RiskLevel != tt.expectedLevel {
				t.Errorf("Risk level = %v, want %v", result.RiskLevel, tt.expectedLevel)
			}
		})
	}
}

func TestShouldRejectTrade(t *testing.T) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())

	tests := []struct {
		name         string
		priceImpact  float64
		shouldReject bool
	}{
		{"Low impact - accept", 0.5, false},
		{"Medium impact - accept", 2.0, false},
		{"High impact - accept", 5.0, false},
		{"Extreme impact - accept", 10.0, false},
		{"At max threshold - accept", 15.0, false},
		{"Above max threshold - reject", 15.1, true},
		{"Very high - reject", 30.0, true},
	}

	for _, tt := range tests {
		t.Run(tt.name, func(t *testing.T) {
			result := validator.ShouldRejectTrade(tt.priceImpact)
			if result != tt.shouldReject {
				t.Errorf("ShouldRejectTrade(%v) = %v, want %v", tt.priceImpact, result, tt.shouldReject)
			}
		})
	}
}

func TestShouldSplitTrade(t *testing.T) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())

	tests := []struct {
		name        string
		priceImpact float64
		shouldSplit bool
	}{
		{"Negligible - no split", 0.1, false},
		{"Low - no split", 0.5, false},
		{"Just below medium - no split", 1.9, false},
		{"At medium threshold - split", 2.0, true},
		{"High - split", 5.0, true},
		{"Extreme - split", 10.0, true},
	}

	for _, tt := range tests {
		t.Run(tt.name, func(t *testing.T) {
			result := validator.ShouldSplitTrade(tt.priceImpact)
			if result != tt.shouldSplit {
				t.Errorf("ShouldSplitTrade(%v) = %v, want %v", tt.priceImpact, result, tt.shouldSplit)
			}
		})
	}
}

func TestGetRecommendedSplitCount(t *testing.T) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())

	tests := []struct {
		name          string
		priceImpact   float64
		expectedSplit int
	}{
		{"Low impact - no split", 0.5, 1},
		{"Medium impact - split in 2", 2.5, 2},
		{"High impact - split in 4", 6.0, 4},
		{"Extreme impact - split in 8", 12.0, 8},
		{"Unacceptable - reject (0)", 20.0, 0},
	}

	for _, tt := range tests {
		t.Run(tt.name, func(t *testing.T) {
			result := validator.GetRecommendedSplitCount(tt.priceImpact)
			if result != tt.expectedSplit {
				t.Errorf("GetRecommendedSplitCount(%v) = %v, want %v", tt.priceImpact, result, tt.expectedSplit)
			}
		})
	}
}

func TestCalculateMaxTradeSize(t *testing.T) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())

	liquidity := big.NewInt(1000000) // 1M units of liquidity

	tests := []struct {
		name                string
		liquidity           *big.Int
		targetPriceImpact   float64
		expectedApproximate int64 // Approximate expected value
	}{
		{"0.5% impact", liquidity, 0.5, 5025},   // ~0.5% of 1M
		{"1% impact", liquidity, 1.0, 10101},    // ~1% of 1M
		{"2% impact", liquidity, 2.0, 20408},    // ~2% of 1M
		{"5% impact", liquidity, 5.0, 52631},    // ~5% of 1M
		{"10% impact", liquidity, 10.0, 111111}, // ~10% of 1M
	}

	for _, tt := range tests {
		t.Run(tt.name, func(t *testing.T) {
			result := validator.CalculateMaxTradeSize(tt.liquidity, tt.targetPriceImpact)

			// Check if result is within 5% of expected value
			resultInt64 := result.Int64()
			lowerBound := int64(float64(tt.expectedApproximate) * 0.95)
			upperBound := int64(float64(tt.expectedApproximate) * 1.05)

			if resultInt64 < lowerBound || resultInt64 > upperBound {
				t.Errorf("CalculateMaxTradeSize() = %v, expected approximately %v (±5%%)", result, tt.expectedApproximate)
			}
		})
	}
}

func TestValidatePriceImpactWithLiquidity(t *testing.T) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())

	liquidity := big.NewInt(1000000) // 1M units

	tests := []struct {
		name              string
		tradeSize         *big.Int
		liquidity         *big.Int
		expectedRiskLevel PriceImpactRiskLevel
	}{
		{"Small trade", big.NewInt(1000), liquidity, RiskLevelNegligible},
		{"Medium trade", big.NewInt(20000), liquidity, RiskLevelMedium},
		{"Large trade", big.NewInt(100000), liquidity, RiskLevelExtreme},
		{"Very large trade", big.NewInt(500000), liquidity, RiskLevelUnacceptable},
	}

	for _, tt := range tests {
		t.Run(tt.name, func(t *testing.T) {
			result := validator.ValidatePriceImpactWithLiquidity(tt.tradeSize, tt.liquidity)
			if result.RiskLevel != tt.expectedRiskLevel {
				t.Errorf("Risk level = %v, want %v (price impact: %.2f%%)",
					result.RiskLevel, tt.expectedRiskLevel, result.PriceImpact)
			}
		})
	}
}

func TestConservativeThresholds(t *testing.T) {
	validator := NewPriceImpactValidator(ConservativePriceImpactThresholds())

	// Test that conservative thresholds are more strict
	// With conservative: High=1.0%, Extreme=2.0%
	// So 1.0% exactly is at the boundary and goes to Extreme
	result := validator.ValidatePriceImpact(1.0)

	if result.RiskLevel != RiskLevelExtreme {
		t.Errorf("With conservative thresholds, 1%% should be Extreme risk, got %v", result.RiskLevel)
	}
}

func TestAggressiveThresholds(t *testing.T) {
	validator := NewPriceImpactValidator(AggressivePriceImpactThresholds())

	// Test that aggressive thresholds are more lenient
	// With aggressive: Low=1.0%, Medium=3.0%
	// So 2.0% falls in the Medium range (between 1.0 and 3.0)
	result := validator.ValidatePriceImpact(2.0)

	if result.RiskLevel != RiskLevelMedium {
		t.Errorf("With aggressive thresholds, 2%% should be Medium risk, got %v", result.RiskLevel)
	}
}

func BenchmarkValidatePriceImpact(b *testing.B) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())

	b.ResetTimer()
	for i := 0; i < b.N; i++ {
		validator.ValidatePriceImpact(2.5)
	}
}

func BenchmarkValidatePriceImpactWithLiquidity(b *testing.B) {
	validator := NewPriceImpactValidator(DefaultPriceImpactThresholds())
	tradeSize := big.NewInt(50000)
	liquidity := big.NewInt(1000000)

	b.ResetTimer()
	for i := 0; i < b.N; i++ {
		validator.ValidatePriceImpactWithLiquidity(tradeSize, liquidity)
	}
}