MEV and Execution Risk
Value lost through ordering, sandwiching, latency and information leakage.
#Risk mechanism
Public transactions reveal intent before execution. Searchers or block builders can reorder around a trade, worsening price or capturing an arbitrage that the position expected to realize.
#Stress conditions
- Large swap against shallow liquidity.
- Loose or absent slippage bounds.
- Predictable rebalance or settlement transaction.
- Volatile market and delayed inclusion.
#Control principles
- Use minimum-output, price and deadline constraints.
- Batch or auction flow where it improves execution.
- Avoid deterministic transactions that leak unnecessary intent.
- Measure execution against contemporaneous market state.