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mev-beta/docs/MICRO_FUNDING_MODE_20251029.md

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MEV Bot Micro-Funding Mode Configuration

Date: October 29, 2025 Funding: 0.001 ETH ($2 USD) Max Gas Per Trade: 0.0005 ETH ($1 USD)


🎯 Overview

All systems have been reconfigured to operate with minimal funding of 0.001 ETH. This is an ultra-low-budget mode optimized for testing or conservative trading.


⚙️ Configuration Changes Applied

Wallet & Funding:

Parameter Old Value New Value
Min Balance 0.01 ETH 0.001 ETH
Recommended Funding 0.03-0.05 ETH 0.001 ETH
Max Gas Per Trade 0.0003 ETH 0.0005 ETH
Estimated Trades 100+ ~2 trades

Bot Configuration (bot_config_micro.yaml):

Profitability Thresholds:

Setting Old Value New Value Reason
min_profit_usd $10.00 $2.00 Lower barrier for execution
min_profit_percentage 0.1% 0.05% More sensitive to opportunities
min_confidence_score 70% 60% Accept more opportunities

Gas Management:

Setting Old Value New Value Reason
max_gas_price_gwei 0.5 1.0 Allow slightly higher gas
max_gas_cost_usd N/A $1.00 Hard cap on gas spending
gas_estimation_buffer 20% 10% Tighter gas estimates

Execution Limits:

Setting Old Value New Value Reason
max_position_size_eth 10 ETH 5 ETH Smaller flash loans
max_trades_per_minute 5 2 Conservative rate limit
max_daily_trades 200 50 Reduced daily limit
max_slippage_percentage 1.0% 0.5% Tighter slippage control

Flash Loan Strategy:

  • Primary Provider: Balancer V2 (0% fee - critical for low budget!)
  • Fallback: Uniswap (0.09% fee), Aave
  • Strategy: Only use Balancer to avoid fees eating into tiny profit margins

Alerting:

Setting Old Value New Value Reason
low_balance_threshold_eth 0.005 0.0003 Alert after 1 trade
enable_alerts false true Critical for micro-funding

📊 Expected Performance

Realistic Expectations with 0.001 ETH:

Capacity:

  • Total Funding: 0.001 ETH (~$2)
  • Max Gas Per Trade: 0.0005 ETH (~$1)
  • Estimated Trades: ~2 transactions
  • Refill Frequency: Every 1-2 days

Trade Execution:

  • Opportunities Detected: 50-200/day (same)
  • Trades Executed: 1-3/day (very selective)
  • Min Profit Required: $2 (after gas)
  • Avg Expected Profit: $2-5 per trade

Daily Performance:

  • Profitable Trades: 1-2
  • Daily Profit: $2-10
  • Weekly Profit: $14-70
  • ROI: 7-35x per week (if successful)

⚠️ Limitations & Considerations

What This Mode Means:

Advantages:

  • Very low risk (~$2 total exposure)
  • Good for testing and learning
  • Proves the system works
  • Can scale up after verification

Limitations:

  • Only ~2 trades before refill needed
  • Must be VERY selective (rejects 99%+ of opportunities)
  • Small profits per trade
  • Frequent refills required
  • Gas costs eat larger % of profits

Critical Constraints:

  1. Gas Efficiency is Critical:

    • Every trade uses 50% of budget on gas
    • Must use Balancer flash loans (0% fee) exclusively
    • Cannot afford failed transactions
  2. Highly Selective Execution:

    • Will reject opportunities below $2 profit
    • Needs 60%+ confidence score
    • Only executes highest-probability trades
  3. Frequent Monitoring Required:

    • Check balance after every trade
    • Refill when below 0.0005 ETH
    • Watch for execution failures
  4. Limited Testing Capacity:

    • Can only test 2 trades before refill
    • May take days to accumulate data
    • Limited opportunity to optimize

💡 Recommendations

For Testing/Learning (Current Mode):

Use 0.001 ETH - Minimal risk, validates system works

  • Expected: 1-2 trades to verify execution
  • Learn how the system operates
  • Minimal financial exposure
  • Refill quickly if successful

For Light Production:

📊 Upgrade to 0.005 ETH - Still conservative

  • Capacity: ~10 trades
  • Daily operation: 3-5 trades
  • Weekly profit: $50-200
  • Refill every 2-3 days

For Full Production:

🚀 Use 0.03-0.05 ETH - Optimal operation

  • Capacity: 60-100 trades
  • Daily operation: 10-20 trades
  • Weekly profit: $500-2,000
  • Refill every 1-2 weeks

📋 Updated Scripts

All scripts automatically use the new thresholds:

check-wallet-balance.sh:

# Now checks for 0.001 ETH minimum
# Shows capacity: ~2 trades
# Alerts when < 0.0005 ETH

fund-bot-wallet.sh:

# Now sends 0.001 ETH by default
# Safety buffer: 0.001 ETH
# Optimized for micro-funding

monitor-and-setup.sh:

# Monitors for 0.001 ETH minimum
# Auto-configures micro-funding mode
# Sets up bot with conservative limits

enable-execution-mode.sh:

# Automatically detects micro-funding mode
# Uses bot_config_micro.yaml
# Applies all low-threshold settings

🚀 Quick Start (Micro-Funding Mode)

1. Fund Wallet with 0.001 ETH:

# Send 0.001 ETH to:
0x40091653f652a259747D86d7Cbe3e2848082a051

# Network: Arbitrum One
# Value: ~$2 USD

2. Run Automated Setup:

cd /home/administrator/projects/mev-beta
./scripts/monitor-and-setup.sh

# Will automatically:
# - Detect 0.001 ETH funding
# - Configure micro-funding mode
# - Start bot with conservative settings
# - Monitor for opportunities

3. Monitor Execution:

# Watch for trades
tail -f logs/mev_bot.log | grep "Executing arbitrage\|Profit"

# Check balance frequently
./scripts/check-wallet-balance.sh

# View on Arbiscan
# https://arbiscan.io/address/0x40091653f652a259747D86d7Cbe3e2848082a051

4. Refill After Trades:

# When balance drops below 0.0005 ETH:
./scripts/fund-bot-wallet.sh

# Or send more via MetaMask

📊 Example Trade Flow

Scenario: Successful $3 Arbitrage Trade

1. Opportunity Detected:
   - Path: WETH → USDC → ARB → WETH
   - Expected Profit: $3.50 (0.18%)
   - Confidence: 85%
   - ✅ Passes thresholds ($2 min, 60% confidence)

2. Flash Loan Request:
   - Provider: Balancer V2
   - Amount: 2.5 ETH
   - Fee: $0 (0% on Balancer)

3. Execution:
   - Swap 1: WETH → USDC on Uniswap
   - Swap 2: USDC → ARB on SushiSwap
   - Swap 3: ARB → WETH on Camelot
   - Gas Used: 0.0004 ETH ($0.80)

4. Result:
   - Gross Profit: $3.50
   - Gas Cost: $0.80
   - Flash Loan Fee: $0
   - Net Profit: $2.70 ✅

5. Balance Update:
   - Before: 0.001000 ETH
   - Gas Spent: -0.0004 ETH
   - Profit: +0.00135 ETH
   - After: 0.00195 ETH

6. Next Action:
   - Can execute 1 more trade
   - Or refill to 0.001 ETH for 2 more trades

🛡️ Risk Management

With 0.001 ETH Funding:

Maximum Loss Scenario:

  • Total Funding: $2.00
  • Worst Case: 2 failed trades
  • Max Loss: $2.00 (100% of funding)
  • Recommendation: Acceptable for testing

Profit Potential:

  • Best Case: 2 successful trades at $5 each
  • Potential Gain: $10
  • ROI: 500% (before refill)
  • Reality Check: More likely $4-6 total

Safety Measures:

  • All trades are atomic (flash loans)
  • Failed trades only waste gas (~$1)
  • Cannot lose more than funded amount
  • Can stop anytime

📈 Scaling Path

Recommended Progression:

Phase 1: Testing (0.001 ETH - Current)
├─ Execute 1-2 trades
├─ Verify system works
├─ Check profit calculations
└─ Learn the process

Phase 2: Light Production (0.005 ETH)
├─ 7-10 days operation
├─ 20-30 trades
├─ Accumulate $50-100 profit
└─ Optimize settings

Phase 3: Full Production (0.03-0.05 ETH)
├─ 2-4 weeks operation
├─ 100-200 trades
├─ Accumulate $500-2000 profit
└─ Automated refills

Phase 4: Profit Reinvestment
├─ Use profits for refills
├─ Gradually increase funding
├─ Optimize for maximum ROI
└─ Scale to larger positions

⚠️ Important Notes

Before Funding:

  1. Understand this is a TEST mode
  2. Only 2 trades capacity
  3. Frequent refills required
  4. $2 total risk exposure

During Operation:

  1. Monitor balance closely
  2. Check logs for execution
  3. Verify trades on Arbiscan
  4. Refill promptly when low

After Testing:

  1. Review performance
  2. Calculate actual ROI
  3. Decide on scaling
  4. Increase funding if successful

🎯 Summary

Current Configuration:

  • Funding: 0.001 ETH (~$2)
  • Max Gas: 0.0005 ETH per trade
  • Min Profit: $2 or 0.05%
  • Capacity: ~2 trades
  • Mode: Ultra-conservative testing

Ready to Fund:

Send 0.001 ETH to:
0x40091653f652a259747D86d7Cbe3e2848082a051

Network: Arbitrum One (Chain ID: 42161)

Then run:

./scripts/monitor-and-setup.sh

System will automatically handle the rest! 🚀


Status: Configuration complete, ready for 0.001 ETH funding Risk Level: Very Low (~$2 exposure) Expected Outcome: 1-2 test trades to validate system Next Step: Fund wallet and run monitor script