7N7D Protocol White Paper
Version 1.0 | December 2025
Executive Summary
7N7D is an autonomous AI trading system that generates returns for investors while continuously improving itself. Unlike traditional trading bots that require constant human oversight, 7N7D's AI writes its own code improvements daily, learns from every trade, and manages its own infrastructure—operating with 99.5% autonomy. Investors can participate by depositing USDC into the trading vault or staking $7N7D tokens to earn 50% of all trading profits.
The Problem
Traditional Trading Bots Are Static
Most automated trading systems use fixed strategies that degrade over time as market conditions change. They require human developers to analyze performance, write updates, test changes, and deploy improvements—a slow, expensive process that creates bottlenecks.
Human Traders Have Limitations
- Cannot operate 24/7 without breaks
- Make emotional decisions during volatility
- Have limited memory of past trades
- Cannot process multiple data sources simultaneously
AI Trading Lacks Transparency
Most AI trading systems are "black boxes"—investors have no visibility into how decisions are made, what the AI is learning, or whether it's actually improving. This creates trust issues and regulatory concerns.
The 7N7D Solution
7N7D solves these problems with a fundamentally different approach: an AI that improves its own code.
Self-Improving AI
The 7N7D trading agent doesn't just adjust parameters—it literally writes new code to improve itself. Every day, the AI:
- Analyzes its trading performance
- Identifies what's working and what isn't
- Writes code changes to improve its strategy
- Creates a GitHub Pull Request (publicly visible)
- Runs automated tests
- Auto-merges when tests pass
- Deploys the improvement
- Repeats
This means the system gets smarter every single day without human intervention.
Complete Transparency
Every code change the AI makes is visible on GitHub. Investors can see exactly what the AI is learning, what changes it's making, and verify that it's operating within safety constraints. All trades are executed on Hyperliquid, a decentralized exchange where every transaction is verifiable on-chain.
24/7 Autonomous Operation
The system operates continuously with minimal human oversight. It monitors markets, executes trades, manages risk, and improves itself around the clock.
How the AI Improves Itself
The 7N7D system runs four autonomous improvement loops:
┌─────────────────────────────────────────────────────────────┐
│ DAILY STRATEGY LOOP │
│ (Every day, 4 AM) │
│ │
│ Analyze Performance → Write Code → GitHub PR → Auto-Merge │
│ │
│ Goal: Improve win rate, profit factor, Sharpe ratio │
└─────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────┐
│ BUGFIX LOOP │
│ (Triggered on error) │
│ │
│ Detect Bug → Analyze Cause → Write Fix → Test → Deploy │
│ │
│ Goal: Self-healing, zero downtime │
└─────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────┐
│ LONG-TERM WEALTH LOOP │
│ (Weekly, Sundays) │
│ │
│ Analyze BTC/ETH/SOL → Optimize Allocation → Simulate │
│ │
│ Goal: Build treasury backing token value │
└─────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────┐
│ INFRASTRUCTURE LOOP │
│ (Biweekly) │
│ │
│ Analyze AWS Costs → Optimize Resources → Deploy Changes │
│ │
│ Goal: Reduce costs, improve performance │
└─────────────────────────────────────────────────────────────┘
Example: Daily Improvement Cycle
Day 1 - Poor Performance:
- P&L: -$12.45
- Win Rate: 42%
- Issue: Too many trades in uncertain markets
AI Analysis: The AI identifies that it's taking too many trades when the market regime is NEUTRAL, resulting in a 35% win rate vs 72% in clear BULL regimes.
Code Change Created:
Increase confidence threshold from 0.60 to 0.75 when market is NEUTRAL
Day 2 - Improved:
- P&L: +$18.20
- Win Rate: 63%
- Fewer trades, but higher quality
The AI learned and improved itself—automatically.
How the AI Learns
Beyond the four improvement loops, 7N7D employs 16 autonomous learning features:
Memory & Pattern Recognition
| Feature | What It Does |
|---|---|
| Contextual Memory | Recalls 100s of similar past trades before each decision |
| Failure Detection | Identifies and avoids patterns that led to losses |
| Pattern Performance | Tracks which chart patterns actually work |
| Time Analysis | Learns optimal trading hours |
Adaptive Intelligence
| Feature | What It Does |
|---|---|
| Agent Ensemble | 5 AI agents vote on each decision |
| Genetic Evolution | Breeds successful strategy variants |
| Strategy Selector | Auto-switches between 4 strategies based on market |
| Dynamic Risk | Adjusts risk limits 0.5x-1.5x based on performance |
Meta-Learning
| Feature | What It Does |
|---|---|
| Meta-Learner | Optimizes the learning process itself |
| Self-Awareness | Knows its own strengths and weaknesses |
| LLM Calibration | Tracks AI confidence accuracy |
| Hourly Micro-Learning | Rapid adaptation every hour |
Expected Performance Improvement
| Timeline | Win Rate | Sharpe Ratio |
|---|---|---|
| Week 1 | +3-5% improvement | +0.2-0.3 |
| Month 1 | +8-12% improvement | +0.5-0.8 |
| Month 3 | +15-20% improvement | +1.0-1.5 |
Based on backtesting and system capabilities. Past performance does not guarantee future results.
Trading Technology
Five-Layer Analysis System
The AI combines five analysis systems for comprehensive market understanding:
┌─────────────────────────────────────────────────────────────┐
│ ANALYSIS LAYERS │
├─────────────────────────────────────────────────────────────┤
│ │
│ 1. Technical Analysis │
│ RSI, MACD, Bollinger Bands, Moving Averages │
│ │
│ 2. Market Regime Detection │
│ BULL / BEAR / NEUTRAL classification │
│ │
│ 3. Sentiment Analysis │
│ News, social media, institutional data │
│ │
│ 4. Pattern Recognition │
│ Chart patterns via AI vision │
│ │
│ 5. CME Gap Analysis │
│ Institutional positioning from futures │
│ │
└─────────────────────────────────────────────────────────────┘
│
▼
LLM Decision Engine
(Claude / DeepSeek)
│
▼
Trading Decision
Execution on Hyperliquid
7N7D trades on Hyperliquid, a high-performance decentralized perpetual exchange:
- Decentralized - Non-custodial, verifiable trades
- Low fees - Maximizes returns
- High performance - Fast execution, tight spreads
- Transparent - All trades visible on-chain
Dynamic Position Sizing
- Leverage: 3x to 20x based on market conditions
- Position Size: Adjusted by confidence and volatility
- Stop Losses: Automatic risk management on every trade
- Circuit Breakers: Pause trading if daily loss exceeds 10%
How to Invest & Earn Returns
There are two ways to participate in 7N7D:
Option 1: Trading Vault
Deposit USDC directly into the trading vault. The AI trades with pooled capital, and you earn proportional returns.
You ──► Deposit USDC ──► Vault ──► AI Trading ──► Profits
│
▼
Vault Shares
(Your Ownership)
How It Works:
- Deposit USDC, receive vault shares
- Share price increases as AI generates profits
- Withdraw anytime at current share price
Option 2: Token Staking
Stake $7N7D tokens to earn 50% of ALL trading profits, paid in USDC.
Stake $7N7D ──► ProfitDistributor Contract ──► Earn 50% of Profits
│
▼
Claim USDC Daily
How It Works:
- Buy $7N7D tokens
- Stake in the ProfitDistributor contract
- Earn proportional share of 50% of all trading profits
- Claim rewards in USDC anytime
Which Option Is Right for You?
| Feature | Trading Vault | Token Staking |
|---|---|---|
| You Deposit | USDC | $7N7D tokens |
| You Earn | Trading profits | 50% of ALL profits |
| Returns In | USDC (via share price) | USDC (claimable) |
| Governance Rights | No | Yes |
| Risk Exposure | Trading + smart contract | Smart contract + token price |
| Best For | USDC-focused investors | Long-term believers |
Profit Distribution
When the AI generates trading profits, they are distributed automatically:
Trading Profit (100%)
│
├──► 50% Token Stakers
│ Distributed in USDC
│ Pro-rata to staked amount
│ Claimable daily
│
├──► 40% Long-Term Wealth
│ Converted to BTC/ETH/SOL
│ Held in protocol treasury
│ Backs token value
│
└──► 10% Buyback & Burn
Market buy $7N7D
Tokens burned forever
Reduces supply
Example Distribution
If the AI makes $10,000 profit in a day:
| Destination | Amount | Effect |
|---|---|---|
| Stakers | $5,000 USDC | Direct yield to token holders |
| Treasury | $4,000 | Adds to BTC/ETH/SOL backing |
| Buyback | $1,000 | Reduces token supply |
Token Economics
Supply Overview
| Metric | Value |
|---|---|
| Total Supply | 1,000,000,000 $7N7D |
| Max Supply | Fixed (no inflation) |
| Burn Mechanism | 10% of profits burned |
Token Distribution
| Category | Allocation | Vesting |
|---|---|---|
| Public Sale | 30% | Immediate |
| Liquidity | 25% | Locked 6 months |
| Team & Advisors | 20% | 4-year vest, 1-year cliff |
| Treasury/DAO | 15% | Governance controlled |
| Early Investors | 10% | 2-year vest, 6-month cliff |
Token Utility
- Staking - Earn 50% of all trading profits
- Governance - Vote on protocol parameters
- Fee Discounts - Reduced vault fees for holders
- Deflationary - 10% of profits buy and burn supply
Fees
Vault Fees
| Fee Type | Rate | When Charged |
|---|---|---|
| Management Fee | 0.5% per year | Accrued daily |
| Performance Fee | 10% of profits | Above high water mark |
| Deposit Fee | 0% | Never |
| Withdrawal Fee | 0% | Never |
High Water Mark Protection
You only pay performance fees on new profits. If the vault drops and recovers, you don't pay fees until it exceeds the previous high.
Fee Comparison
| Platform | Management | Performance |
|---|---|---|
| 7N7D Vault | 0.5% | 10% |
| Hedge Funds | 2% | 20% |
| Robo-Advisors | 0.25-0.5% | 0% |
Security & Transparency
Code Transparency
- All AI changes visible at app.7n7d.com/ai-dev
- Smart contracts open-source at github.com/7N7D/contracts
- Public commit history showing every improvement
- Test requirements - changes only deploy if tests pass
On-Chain Verification
- Every trade executed on Hyperliquid (verifiable)
- Daily reconciliation within ±$0.10 tolerance
- Smart contracts deployed on Arbitrum (auditable)
Smart Contract Security
- ERC-4626 Standard - Battle-tested vault implementation
- 48-Hour Timelock - Major changes require waiting period
- No Admin Keys - Cannot be modified arbitrarily
- Professional Audit - Security review completed
Risk Management
- Position Limits - Maximum exposure caps
- Circuit Breakers - Pause on 10% daily loss or 5 consecutive losses
- Stop Losses - Every trade has automatic risk limits
- Policy Enforcement - AI cannot modify safety constraints
Risk Factors
Investors should carefully consider the following risks:
Trading Risks
- Markets are volatile and unpredictable
- AI performance may vary with market conditions
- Past performance does not guarantee future results
- Leveraged trading amplifies both gains and losses
Smart Contract Risks
- Despite audits, smart contracts may contain vulnerabilities
- Blockchain network issues could affect operations
- DeFi protocols carry inherent technical risks
Token Risks
- Token price may be volatile
- Liquidity may vary
- Regulatory environment is uncertain
Operational Risks
- Exchange (Hyperliquid) availability and performance
- Infrastructure dependencies (AWS, APIs)
- Key personnel and development continuity
Getting Started
Step 1: Connect Wallet
Visit 7n7d.com and connect your wallet (MetaMask, WalletConnect, or Privy).
Step 2: Choose Your Investment
For Vault:
- Navigate to the Vault page
- Deposit USDC
- Receive vault shares
For Staking:
- Acquire $7N7D tokens
- Navigate to the Stake page
- Stake tokens to earn 50% of profits
Step 3: Monitor & Earn
- Track performance on the Dashboard
- View AI improvements on the AI Dev page
- Claim staking rewards anytime
- Withdraw from vault anytime
Summary
7N7D represents a new paradigm in automated trading: a system that genuinely improves itself through code, not just parameter tuning. With complete transparency via app.7n7d.com/ai-dev and on-chain verification, investors can trust what the AI is doing while earning returns from its continuous improvement.
Key Points:
- Token live on mainnet (Ethereum L1 + Arbitrum)
- AI writes its own code improvements daily
- 16 autonomous learning features
- Complete transparency via app.7n7d.com/ai-dev
- Smart contracts open-source at github.com/7N7D/contracts
- Two ways to earn: Vault deposits or Token staking
- 50% of all profits go to stakers
- Deflationary token economics
Learn More
- How It Works - Detailed system explanation
- Trading Vault - Vault deposit guide
- Token Economics - Full tokenomics
- FAQ - Common questions
This white paper is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Please conduct your own research and consult with financial advisors before investing.
7N7D Protocol | 7n7d.com | December 2025