> For the complete documentation index, see [llms.txt](https://docs.fluxpointstudios.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fluxpointstudios.com/products/adam-litepaper.md).

# ADAM Litepaper

Updated November 2025 — Version 1.2

<figure><img src="https://1356692922-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUuGwxkf8UtZNwSX6MybN%2Fuploads%2FqQnNTIuoEfgAG8VIHB6V%2FADAM.png?alt=media&amp;token=2378df6c-11cf-47fe-a9de-06e960dfe0ba" alt="" width="563"><figcaption><p>AI‑Driven Adaptive Market Making (ADAM)</p></figcaption></figure>

***

### Abstract

AI‑Driven Adaptive Market Making (ADAM) is an autonomous portfolio‑balancing and liquidity‑provisioning system built on Cardano. ADAM combines deterministic rebalancing logic with real‑time, AI‑powered token‑risk analysis provided by [**T**](https://x.com/agentic_t), Flux Point Studios’ agentic intelligence entity. The goal is to maintain optimal asset allocation based on user specifications while surfacing actionable insights on market conditions, social sentiment, and on‑chain metrics—empowering users to compound yield with lower risk.

***

### Motivation

Traditional market‑making and rebalancing strategies rely on static rules that ignore rapidly evolving token fundamentals, community sentiment, and liquidity shocks. DeFi participants need:

* **Adaptive execution** that reacts to changing risk factors.
* **Actionable intelligence** distilled from diverse data sources.
* **Non‑custodial automation** they can trust.

ADAM addresses these gaps by unifying a rules‑based rebalancer with **T**'s risk‑analysis engine.

***

### System Overview

```
┌────────────────────────────┐
│  Wallet / Portfolio State  │  ← UTxO snapshot + prices
└──────────────┬─────────────┘
               │ fetch
               ▼
┌────────────────────────────┐
│  Allocation Analyzer       │  ← target %, tolerance
└──────────────┬─────────────┘
   needs rebalance? │ yes             no │
               ▼                      ▼
┌────────────────────────────┐   ┌─────────────────────────┐
│  Rebalancing Engine        │   │  Sleep / Monitor        │
│  (deterministic)           │   └─────────────────────────┘
└──────────────┬─────────────┘
               │ builds tx
               ▼
┌────────────────────────────┐
│  Trade Execution Layer     │  ← DEX router
└──────────────┬─────────────┘
               │ tx hash
               ▼
┌────────────────────────────┐
│  AI Risk Analyzer (T)      │  ← TapTools, Xerberus, X, Others
└──────────────┬─────────────┘
               │ notifications / dashboard
               ▼
           End‑user / dApp
```

***

### Parameters (User Specified)

<table><thead><tr><th>Variable</th><th>Default</th></tr></thead><tbody><tr><td><pre class="language-properties"><code class="lang-properties">MIN_PROFIT_THRESHOLD
</code></pre></td><td><pre class="language-properties"><code class="lang-properties">0.02
</code></pre></td></tr><tr><td><pre><code>MAX_POSITION_SIZE_ADA
</code></pre></td><td><pre><code>100
</code></pre></td></tr><tr><td><pre><code>MIN_TRADE_SIZE_ADA
</code></pre></td><td><pre><code>50
</code></pre></td></tr><tr><td><pre><code>MAX_SLIPPAGE
</code></pre></td><td><pre><code>3.0
</code></pre></td></tr></tbody></table>

***

### AI‑Enhanced Risk Analysis

While the deterministic engine keeps allocations on target, **T** continuously scores each token on:

* **Price momentum & liquidity** (DEX volumes, order‑book depth)
* **On‑chain health** (active wallets, whale flows, contract events)
* **Social sentiment** (Twitter/X, Discord, Reddit activity)

#### Unified API

```bash
POST /analyze-token
{
  "tokenName": "SNEK",
  "policyId": "279c909f348e533da5808898f87f9a14...",
  "network": "cardano"
}
```

The response returns a directional bias (Bullish / Bearish), confidence level, and explanatory bullet points. Users can opt‑in to:

* **Alerts** before rebalances if risk spikes.
* **Override suggestions** (e.g., pause buys on high‑risk tokens).

### ADAM Analytics Engine Example

<figure><img src="https://1356692922-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUuGwxkf8UtZNwSX6MybN%2Fuploads%2FjD6uwrPiIahBwQdzwdUP%2Fimage.png?alt=media&amp;token=585e4289-80e2-4bf2-8658-51169132d678" alt=""><figcaption></figcaption></figure>

***

### Implementation Stack

| Layer                                                   | Tech                                                                                  |
| ------------------------------------------------------- | ------------------------------------------------------------------------------------- |
| Liquidity Pool Insights and DEX transaction submissions | <https://github.com/IndigoProtocol/dexter> & <https://github.com/IndigoProtocol/iris> |
| Off‑chain agent runtime                                 | Node.js (TypeScript)                                                                  |
| Data ingestion                                          | TapTools, Xerberus, Blockfrost, X, Lunar Crush, ADAWhiz, Market Raker AI              |
| Wallet & Tx library                                     | MeshJS + lucid-evolution                                                              |

***

### Security & Compliance

* **Non‑custodial keys**: ADAM operates via client‑side wallet signatures; funds never leave user custody.
* **Rate‑limiting**: AI calls are signed + metered; no PII stored.

***

### Launch & Access

> **ADAM v2 update (2026).** ADAM v2 removes launch passes and subscriptions entirely — access is open and priced **per transaction only**. T1/T2 ADAM Launch Passes are being bought out with cMATRA through the [cMATRA Token Merger](/materios-partner-chain/faq.md#33a-i-hold-a-t1-or-t2-adam-launch-pass-will-i-lose-access-to-adam-if-i-surrender-it) (redemption window closes November 28, 2026) — surrendering a pass does **not** cost you ADAM access. The phased-access history below is preserved for the record.

**ADAM** launched in three controlled phases:

* ~~**Phase 1** – Access granted for holders of T1 ADAM Launch Pass (Black and Copper - 250,000 $AGENT - Max Supply of 10 - Earliest Access to Launch and all new features) while we closely monitor operational performance.~~ **Phase 1 Complete. There was a mint issue that allowed 43 passes to be minted. We chose to honor them all. (Secondary Market:** [**https://www.jpg.store/collection/t1adamlaunchpass**](https://www.jpg.store/collection/t1adamlaunchpass)**)**
  * **T1 Benefits:**
    * **LIFETIME ACCESS TO ADAM**
    * **+2 Additional Trading Agents**
* ~~**Phase 2** – Access widens to holders of T2 ADAM Launch Pass (Aluminum - 100,000 $AGENT - Max Supply of 150 - Earlier Access to Launch and all new features). Once again we monitor and confirm stability. (Sale Date: 8/1/2025 at 17:00 UTC).~~ **Phase 2 Complete. (Secondary Market:** [**https://www.jpg.store/collection/t2adamlaunchpass**](https://www.jpg.store/collection/t2adamlaunchpass)**)**
  * **T2 Benefits:**
    * **2yr ACCESS TO ADAM (Starting November 1, 2025)**
      * **+1 Additional Trading Agents**
* **Phase 3** – Public launch with ~~20,000 $AGENT~~ 50 $USDM per month subscription for access to ADAM.

These *ADAM Launch Passes* acted as a bridge for tiered early access during launch. Under ADAM v2 they are no longer required — see the update note above.\
\
These Launch Passes will be available starting with T1 on 7/3/2025 at <https://fluxpointstudios.com/adam>

### Subscription (superseded by ADAM v2)

~~Once launched, users pay 50 $USDM per month to Flux Point Studios to activate **one trading agent bound to a single wallet**.~~ **Superseded:** ADAM v2 has no subscription and no $AGENT-denominated pricing — usage is billed **per transaction only**. ($AGENT itself is consolidating into cMATRA via the [token merger](/materios-partner-chain/cmatra-token-merger.md).)

***

### Team

[Flux Point Studios, Inc.](https://fluxpointstudios.com/)

***

### Legal Disclaimer

*This document is for informational purposes only and does not constitute investment advice or an offer to sell any security. Digital asset markets are volatile and carry risk. Always perform your own due diligence.*

***

*© 2025 Flux Point Studios, Inc. All rights reserved.*