Execution Layer Internals
Core Responsibility of the Execution Layer
The execution layer has one job:
Translate strategy decisions into real market actions without giving any strategy an unfair advantage.
It does not:
Optimize execution for profit
Improve fill quality for certain strategies
Hide latency or slippage
Its goal is consistency, not performance enhancement.
Separation of Concerns
The execution layer is intentionally isolated from:
Strategy logic
Scoring logic
Reputation logic
Reward distribution
This separation prevents:
Feedback loops
Hidden optimizations
Strategy-specific tuning
From a system perspective:
No shortcut paths exist.
Execution Permissions Model
Each strategy is registered with an explicit execution profile:
Allowed markets
Maximum leverage
Maximum position size
Allowed order types
Risk constraints
The execution layer enforces, not negotiates.
If a strategy requests an action outside its permission set:
The action is rejected
The event is logged
Risk enforcement may be triggered
Order Lifecycle (Simplified)
From a dev standpoint, an order follows this lifecycle:
Strategy emits intent (e.g. open long, size X, market Y)
Risk Engine validates intent
leverage check
size check
drawdown check
Execution Adapter constructs order
exchange-specific format
normalized parameters
Order submitted to market
real DEX
real latency
real fees
Execution result returned
fill price
partial fills
rejections
Execution state recorded
immutable logs
timestamped
At no point can the strategy bypass steps 2–5.
Exchange Adapters
Benchmark X uses exchange adapters to normalize execution across different perp DEXs.
Each adapter handles:
Order formatting
Fee calculation
Funding rate tracking
Position state reconciliation
Adapters are:
Stateless
Deterministic
Replaceable
This allows:
Multi-DEX execution
Identical behavior across venues
Clean future expansion
Latency Is Not Hidden
Execution latency is treated as part of performance.
Benchmark X does not:
Artificially synchronize fills
Backdate executions
Smooth price movements
If a strategy is sensitive to latency, it will show in results.
This is intentional.
Slippage Handling
Slippage is not simulated or averaged.
Actual fill prices are used:
Market orders fill at market
Limit orders may miss
Partial fills are recorded
Slippage becomes part of:
PnL
Risk metrics
BX Score inputs
Strategies that ignore liquidity constraints will be penalized naturally.
Failure Handling
The execution layer is designed to fail safely.
Failure cases include:
Exchange downtime
RPC errors
Order rejection
Network instability
System behavior:
Strategy execution pauses
Positions may be force-closed if risk limits are breached
Events are logged for audit
Slashing may occur if violations persist
The system prioritizes capital safety and integrity over strategy continuity.
Determinism & Replayability
All execution events are:
Timestamped
Parameterized
Logged
This allows:
Replay of Battle Rooms
Post-mortem analysis
Independent verification
If two strategies take the same actions under the same conditions, execution outcomes will differ only due to market behavior.
What the Execution Layer Guarantees
From a developer perspective, the execution layer guarantees:
No strategy-specific optimizations
No hidden execution advantages
No simulation shortcuts
No privileged access paths
What it does not guarantee:
Best possible fills
Profitability
Low latency
Those are properties of the strategy, not the system.
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