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We have conducted an agent-based simulation of chain bankruptcy. The propagation of credit risk on a network, i.e., chain bankruptcy, is the key to nderstanding largesized bankruptcies. In our model, decrease of revenue by the loss of…

General Finance · Quantitative Finance 2008-12-02 Yuichi Ikeda , Yoshi Fujiwara , Wataru Souma , Hideaki Aoyama , Hiroshi Iyetomi

Making a decision in a changeable and dynamic environment is an arduous task owing to the lack of information, their uncertainties and the unawareness of planners about the future evolution of incidents. The use of a decision support system…

Artificial Intelligence · Computer Science 2009-04-21 Fahem Kebair , Frederic Serin

We develop a stochastic volatility framework for modeling multiple currencies based on CBI-time-changed L\'evy processes. The proposed framework captures the typical risk characteristics of FX markets and is coherent with the symmetries of…

Pricing of Securities · Quantitative Finance 2024-06-11 Claudio Fontana , Alessandro Gnoatto , Guillaume Szulda

As decentralized finance (DeFi) evolves, distinguishing between user behaviors - liquidity provision versus active trading - has become vital for risk modeling and on-chain reputation. We propose a behavioral scoring framework for Uniswap…

General Finance · Quantitative Finance 2025-07-29 Dhanashekar Kandaswamy , Ashutosh Sahoo , Akshay SP , Gurukiran S , Parag Paul , Girish G N

Automated Market Makers (AMMs), as a core infrastructure of decentralized finance (DeFi), uniquely drive on-chain asset pricing through a deterministic reserve ratio mechanism. Unlike traditional markets, AMM price dynamics is triggered…

Machine Learning · Computer Science 2026-04-23 Huaiyu Jia , Jiehshun You , Yizhi Luo , Jingyu Liu , Shuo Sun

Cryptocurrency markets present unique prediction challenges due to their extreme volatility, 24/7 operation, and hypersensitivity to news events, with existing approaches suffering from key information extraction and poor sideways market…

Computational Finance · Quantitative Finance 2025-10-10 Kairan Hong , Jinling Gan , Qiushi Tian , Yanglinxuan Guo , Rui Guo , Runnan Li

We construct realistic spot and equity option market simulators for a single underlying on the basis of normalizing flows. We address the high-dimensionality of market observed call prices through an arbitrage-free autoencoder that…

Computational Finance · Quantitative Finance 2021-12-14 Magnus Wiese , Ben Wood , Alexandre Pachoud , Ralf Korn , Hans Buehler , Phillip Murray , Lianjun Bai

The autonomous trading agent is one of the most actively studied areas of artificial intelligence to solve the capital market portfolio management problem. The two primary goals of the portfolio management problem are maximizing profit and…

Trading and Market Microstructure · Quantitative Finance 2019-09-10 Wonsup Shin , Seok-Jun Bu , Sung-Bae Cho

Synthetic assets are decentralized finance (DeFi) analogues of derivatives in the traditional finance (TradFi) world - financial arrangements which derive value from and are directly pegged to fluctuations in the value of an underlying…

General Finance · Quantitative Finance 2022-09-22 Abrar Rahman , Victor Shi , Matthew Ding , Elliot Choi

In this paper, we consider a simple linear exponential quadratic Gaussian (LEQG) tracking problem for a multi-agent system. We study the dynamical behaviors of the group as we vary the risk-sensitivity parameter, comparing in particular the…

Optimization and Control · Mathematics 2007-07-27 Jerome Le Ny , Eric Feron

Evaluation of systemic risk in networks of financial institutions in general requires information of inter-institution financial exposures. In the framework of Debt Rank algorithm, we introduce an approximate method of systemic risk…

Risk Management · Quantitative Finance 2021-04-14 Sebastian M. Krause , Hrvoje Štefančić , Vinko Zlatić , Guido Caldarelli

This paper presents the application of Tokenlab, an agent-based modeling framework designed to analyze price dynamics and speculative behavior within token-based economies. By decomposing complex token systems into discrete agent…

Multiagent Systems · Computer Science 2024-12-11 Mengjue Wang , Stylianos Kampakis

In this paper an agent-based simulation is developed in order to evaluate an AmI scenario based on agents. Many AmI applications are implemented through agents but they are not compared to any other existing alternative in order to evaluate…

Artificial Intelligence · Computer Science 2024-01-26 J. Carbo , N. Sanchez , J. M. Molina

As automated trading gains traction in the financial market, algorithmic investment strategies are increasingly prominent. While Large Language Models (LLMs) and Agent-based models exhibit promising potential in real-time market analysis…

Multiagent Systems · Computer Science 2025-02-20 Xiangyu Li , Yawen Zeng , Xiaofen Xing , Jin Xu , Xiangmin Xu

Multi-agents systems communication is a technology, which provides a way for multiple interacting intelligent agents to communicate with each other and with environment. Multiple-agent systems are used to solve problems that are difficult…

Multiagent Systems · Computer Science 2017-03-01 S. Ponomarev , A. E. Voronkov

We present ABIDES-Economist, an agent-based simulator for economic systems that includes heterogeneous households, firms, a central bank, and a government. Agent behavior can be defined using domain-specific behavioral rules or learned…

Multiagent Systems · Computer Science 2025-08-14 Kshama Dwarakanath , Tucker Balch , Svitlana Vyetrenko

Designing a financial market that works well is very important for developing and maintaining an advanced economy, but is not easy because changing detailed rules, even ones that seem trivial, sometimes causes unexpected large impacts and…

Trading and Market Microstructure · Quantitative Finance 2021-01-08 Takanobu Mizuta

We present an exploration of a reputation system based on explicit ratings weighted by the values of corresponding financial transactions from the perspective of its ability to grant "security" to market participants by protecting them from…

Multiagent Systems · Computer Science 2019-05-21 Anton Kolonin , Ben Goertzel , Cassio Pennachin , Deborah Duong , Matt Ikle , Nejc Znidar , Marco Argentieri

The rapid growth of Decentralized Finance (DeFi) boosts the Ethereum ecosystem. At the same time, attacks towards DeFi applications (apps) are increasing. However, to the best of our knowledge, existing smart contract vulnerability…

Cryptography and Security · Computer Science 2021-05-03 Siwei Wu , Dabao Wang , Jianting He , Yajin Zhou , Lei Wu , Xingliang Yuan , Qinming He , Kui Ren

In the context of understanding the nature of the risk transformation process of the financial system we propose an iterative risk-trading game between several agents who build their trading strategies based on a general utility setting.…

Condensed Matter · Physics 2009-11-10 Stefan Thurner , Rudolf Hanel , Stefan Pichler