VECTOR_ANALYSIS // FINANCE

MEV (Maximal Extractable Value)

NODE: MEV

VERIFICATION: PASSED

01_DEFINITION

Strict Definition

"The maximum value that can be extracted from block production in excess of the standard block reward and gas fees, typically by reordering transactions."

Liability Check // Risk Analysis

The 'Toxic Execution' risk. MEV bots can 'Sandwich' your trades, causing you to buy at a higher price and sell at a lower price than expected, acting as a hidden tax on your slippage.

Knowledge Context // Related Terms

Slippage Gas Fees Mempool

Auditor NotesVS-AN-2026

Strategy Domain

"Use 'Private RPC' endpoints (like Flashbots) for large corporate trades to hide them from the public mempool where MEV bots operate."

Operations Standard

"Budget for MEV-induced slippage (typically 0.1% to 1%) when planning high-volume DeFi operations."

Legal & Compliance

"Acknowledge MEV as a technical necessity of current blockchain architecture rather than a controllable regulatory variable."

Run Readiness Assessment

DOCUMENT_ID: CW3-MEV-(MAXIMAL-EXTRACTABLE-VALUE)-2026
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: GYY2A1