# AegisTrade AI — Known Limitations & Operational Considerations

## 1. Exchange Integration Boundaries
- **Bybit V5 Perpetual Contracts**: The system focuses on Linear USDT Perpetual contracts (`BTCUSDT`, `ETHUSDT`, `SOLUSDT`). Inverse perpetuals, USDC options, and Spot margin borrowing are not automatically traded in this release.
- **Demo Server Maintenance**: Bybit Demo Trading (`api-demo.bybit.com`) is occasionally taken offline for scheduled exchange maintenance by Bybit. During such windows, the system transitions to `DEGRADED` status and holds cash positions.

## 2. Market Friction & Simulation Assumptions
- **Backtesting Granularity**: Backtesting is evaluated on historical 15-minute candlesticks. Intra-candle tick movements model conservative worst-case fills (stop-loss takes precedence over take-profit if both extreme prices are touched in the same bar), which prevents over-optimism but may slightly overestimate stops in fast trend continuation.
- **Slippage in Extreme Volatility**: Default modeled slippage is $0.02\%$ ($2\text{ bps}$). During extraordinary market dislocations (e.g. major liquidation cascades), real-world market impact can exceed this estimate. The conservative uncertainty buffer ($3\text{ bps}$) mitigates this variance.

## 3. Machine Learning & Retraining
- **Zero Paid LLM Dependencies**: The system relies on causal statistical estimators, regularized logistic models, and gradient boosting rather than third-party LLM APIs (OpenAI/Gemini/Claude). This eliminates recurring operational costs and prevents non-deterministic hallucinations in trade execution.
- **Manual Promotion Requirement**: Candidate models generated via the retraining pipeline are registered exclusively as `CHALLENGER`. They will never automatically execute live orders without explicit administrator authorization.