mev-beta/docs/MICRO_FUNDING_MODE_20251029.md

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

### **fund-bot-wallet.sh:**
```bash
# Now sends 0.001 ETH by default
# Safety buffer: 0.001 ETH
# Optimized for micro-funding
```

### **monitor-and-setup.sh:**
```bash
# Monitors for 0.001 ETH minimum
# Auto-configures micro-funding mode
# Sets up bot with conservative limits
```

### **enable-execution-mode.sh:**
```bash
# 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:**
```bash
# Send 0.001 ETH to:
0x40091653f652a259747D86d7Cbe3e2848082a051

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

**2. Run Automated Setup:**
```bash
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:**
```bash
# 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:**
```bash
# 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:**
```bash
./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