Liquidity Regime

DEEP / NORMAL / THIN / FRAGILE classification of current crypto market liquidity. Five signals — funding rates, open interest, basis spread, liquidation flow, and orderbook imbalance — combined into a single signed regime. $0.10. 60s cache.

What It Does

Tells agents whether market depth is supportive or fragile right now. In DEEP conditions, large entries execute without meaningful slippage and liquidation cascades are unlikely. In FRAGILE conditions, thin books and extreme funding create conditions for rapid price dislocation.

Distinct from MSSI (which measures stress) — Liquidity Regime measures depth and execution conditions specifically.

Inputs

InputSourceSignal direction
Funding ratesMSFR oracle (10 exchanges)Extreme funding = leverage crowding = fragility
Open interestMSFR oracleOI growth without price = overleveraged = fragility
Basis spreadMSFR oracleWide basis = market fragmentation = thin
Liquidation flowDEXT (liquidation_events.csv)High liq volume = cascades underway = fragile
Orderbook imbalanceDEXT (orderbook_imbalance.csv)Extreme bid/ask imbalance = fragile depth

Regimes

RegimeInterpretationImplication
DEEPStrong depth, balanced books, normal funding and OISupportive for large entries — low slippage risk
NORMALAdequate depth, no extreme signalsStandard conditions — no liquidity discount needed
THINReduced depth, widening basis, or elevated fundingElevated slippage — size down or wait for improvement
FRAGILEExtreme funding, overleveraged OI, or active liquidation cascadesHigh gap risk — liquidation events can move price 2–5% in seconds

Endpoint

EndpointDescriptionPriceCachePreview
/oracle/regime/liquidityLiquidity regime with stress score and dominant signal$0.1060s/preview ↗

Response Format

json
{
  "regime": "NORMAL",
  "stress_score": -2.0,
  "dominant_signal": "balanced",
  "signed": true,
  "fetched_at": 1781100000
}

Preview Endpoint

Returns regime, stress_score, and dominant_signal — unsigned, up to 24h stale.

bash
curl https://api.myceliasignal.com/oracle/regime/liquidity/preview

Agent Use Patterns

Execution gate: Before entering a large position, check Liquidity Regime. If FRAGILE, delay or reduce size — slippage will eat into any edge.

Stop placement: In THIN or FRAGILE conditions, place stops wider to account for gap risk from liquidation cascades.

Pair with Perp Setup: A STRONG Perp Setup in FRAGILE liquidity is a lower-quality signal than the same setup in DEEP liquidity — the entry may not be executable at the implied price.