Net-Edge Gate

The Net-Edge gate is Heron's core risk control: the agent strikes only when the edge is real.

Formula

gross_edge = venue_carry + signal_edge
costs      = gas + slippage + lockup + uncertainty + hurdle
net_edge   = gross_edge - costs

If net_edge ≤ 0 → the agent declines. The reason is recorded in the VDL.

Cost Components

Cost	Description
Gas	Transaction fee on the target chain
Slippage	Expected price impact for the allocation size
Lockup	Opportunity cost of capital being deployed (time value)
Uncertainty	Confidence discount on the signal quality
Hurdle	Minimum margin above zero required to act

Edge Components

Edge	Source
Venue carry	On-chain supply APY from the lending protocol (e.g., Solend 1.27%)
Signal edge	Additional alpha from paid market data (Vybe Analytics via pay.sh)

Why This Matters

Without a net-edge gate, a yield agent would:

Pay gas to move $10 into a pool returning $0.001/year
Accumulate signal costs that exceed the yield
Churn positions when the expected gain is noise

The gate ensures every action the agent takes is expected to be profitable after ALL friction costs. When it can't find edge, it stands still — and that inaction is recorded as a verified decision.

Decision Outcomes

Outcome	Recorded As	Meaning
`net_edge > 0`	`acted: true`	Agent allocated into venue
`net_edge ≤ 0`	`acted: false`	Agent declined, stood still
No drift detected	Not recorded	No evaluation needed

Example

# Real numbers from a Solend cycle:
venue_carry = 0.0127      # 1.27% APY from Solend
signal_edge = 0.0005      # Small alpha from token momentum signal
gross_edge  = 0.0132
 
gas       = 0.000005      # ~5000 lamports
slippage  = 0.0001        # Minimal for SOL/cSOL
lockup    = 0.001         # Opportunity cost at current rates
uncertainty = 0.002       # Signal confidence discount
hurdle    = 0.005         # Minimum acceptable margin
 
costs     = 0.008105
net_edge  = 0.0132 - 0.008105 = 0.005095  # > 0 → ALLOCATE

Integration with Keeper

The net-edge gate sits between signal acquisition and on-chain submission in the decision loop:

Signals purchased → Net-Edge evaluated → If positive → Submit → Record
                                        → If negative → Decline → Record

Both outcomes are part of the verifiable record.

Decision Loop Verifiable Debate Ledger