On-chain markets are not stationary. Volatility regimes shift abruptly. Correlations converge under stress. Liquidity disappears precisely when it is most needed.
Those three facts are usually stated separately, but they are the same fact observed from different angles, and they arrive together. The diversification a portfolio is relying on thins out at the moment it is called upon, and the exit it assumed was available is the one being used by everybody else simultaneously. A model calibrated on the market's ordinary behaviour is calibrated on the conditions under which its assumptions were never going to be tested.
Sagitta AAA therefore approaches allocation through regime awareness rather than static models. The system does not assume that the environment that produced its parameters is the environment it will be operating in.
Scenario governance is the formal process of adjusting operational posture in response to market conditions while holding deterministic principles intact. The mechanism is deliberately narrow. Operators do not make emotional overrides, and they do not reach into individual decisions. They declare regime context — conservative through drawdowns, neutral through stability, aggressive only where conditions actually justify it — and the allocator's behaviour follows from that declaration through the same rules it always applies.
What this creates is a governed adaptation layer. The allocator remains rule-bound, so every decision stays reconstructable and defensible; but the rules acknowledge environmental reality, because different market states genuinely do warrant different constraint sensitivity. Treating a stressed market and a calm one identically is not discipline. It is a failure to observe.
The strategic case is straightforward. Scenario governance is how institutions survive chaos: it replaces reactive trading with structured posture shifts. The difference between the two is not the direction of the move — often it is the same move — but whether it was a decision the framework anticipated and sanctioned, or an improvisation that happened to be correct.
Crypto markets do not reward perfect prediction. Nobody is paid for having called the regime change. They reward organizations that remain solvent through regime transitions, which is an entirely different capability and one that can actually be engineered.
Sagitta AAA is built to enable that continuity through regime-aware allocation.
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