Miners

Underwriters, acting as Miners within the Bittensor subnet, are central to the SecureTrade bittensor platform. They assess credit line issuance requests, perform credit line issuance and risk assessment and submit Credit Line Issuance Offers, and transfer TRADE-S to the credit line borrowers.

This document outlines how miners operate within the subnet and their interaction with both the Bittensor subnet and SecureTrade Application.

Getting Started as a Miner

1. Register as a Miner

• Create miner account in SecureTrade application
• Configure your wallet and risk assessment parameters
• Set up your underwriting strategy and risk tolerance

2. Join the Bittensor Subnet

• Register your wallet on the Bittensor network
• Stake TAO tokens to participate in the subnet
• Run the miner software to connect to the network

3. Use the Miner Template

The bittensor-subnet repository provides a complete miner.py template that you can customize to build your competitive advantage:

• Template Provided: Use the miner.py template from the bittensor-subnet repository
• Customization Options: Modify the code to implement your risk assessment logic
• AI Integration: Add your own AI models for credit evaluation
• Risk Parameters: Configure your risk tolerance and pricing strategy

Core Responsibilities

1. Process Credit Line Issuance Requests (CLRs)

Received by the validator which contains:

• borrower_id: Buyer identity
• lockin_period: Represents an estimate time for which miner's collateral is gonna be locked and can be used for risk assessment by the miner
• borrower_data: Financial history, tx details, purchase context, risk profile
• metadata: E.g. transaction context
• clr_id: Unique identifier for a credit line issuance request

2. Acquiring Collateral

Deposit TRADE-S to Borrowers: Deposit (TRADE-S) into the borrowers public safe on the public network.

The SecureTrade Trader application tracks the successful deposits made and facilitates minting of TRADE-P Tokens on the private EVM network, generates a equivalent supply of TRADE-S for use as collateral

3. Risk Assessment & Credit Line Issuance

Use custom algo. for credit line issuance & assess Borrower's (Buyer) creditworthiness & repayment ability based on CLR and generate credit line issuance offers with a proposed premium.

4. Submitting Offer

Submit the Credit Line Issuance Offer to assign a credit limit, by sending a p2p message to validator.

Provide collateral in the form of TRADE-S (ERC-20) to back the Buyer's payment obligation in PayPledge transactions.

5. After Offer Selection

Validator compares the offers and selects the optimal one (least premium, max credit amount offered) - invites that miner to issue the credit limit, by sending a p2p message to miner.

Miner issues the credit limit to buyer by depositing TRADE-S to PUB_SAFE_BUYER and send a response back to validator.

How Mining Works

In traditional trade finance, credit line issuance operates as follows:

• Banks/Underwriters assess a company's creditworthiness using financial statements, payment history, and industry analysis
• Credit Limits are set based on the company's ability to repay, typically 10-30% of annual revenue
• Premiums are charged as a percentage of the credit amount, usually 1-5% annually
• Collateral is required to secure the credit line, often cash deposits or other assets

The SecureTrade marketplace digitizes this process:

• Miners replace traditional underwriters, using AI instead of manual analysis
• Real-time Assessment happens in minutes instead of weeks
• Competitive Bidding drives down costs and improves terms
• Transparent Process with clear evaluation criteria and selection logic

Building Your Competitive Edge

1. AI Model Integration

• Replace the basic risk assessment with your own machine learning models
• Integrate external data sources (credit bureaus, market data, news sentiment)
• Use advanced algorithms (XGBoost, neural networks, ensemble methods)
• Implement real-time model updates based on performance feedback

2. External Data Integration

• Connect to financial APIs (Dun & Bradstreet, Experian, Creditsafe)
• Integrate market data feeds for real-time economic indicators
• Use alternative data sources (social media, satellite data, supply chain)
• Build relationships with specialized data providers

3. Custom Pricing Strategies

• Develop dynamic pricing models that adjust to market conditions
• Implement risk-based pricing tiers for different borrower profiles
• Use machine learning to optimize premium rates for maximum win rate
• Create competitive pricing algorithms that balance risk and reward

4. Risk Assessment Sophistication

• Build multi-factor risk models considering industry, geography, and market conditions
• Implement portfolio-level risk management to avoid concentration
• Use historical performance data to improve future assessments
• Develop early warning systems for potential defaults

How Credit Line Issuance Works

In traditional trade finance, credit line issuance operates as follows:

• Banks/Underwriters assess a company's creditworthiness using financial statements, payment history, and industry analysis
• Credit Limits are set based on the company's ability to repay, typically 10-30% of annual revenue
• Premiums are charged as a percentage of the credit amount, usually 1-5% annually
• Collateral is required to secure the credit line, often cash deposits or other assets

The SecureTrade marketplace digitizes this process:

• Miners replace traditional underwriters, using AI instead of manual analysis
• Real-time Assessment happens in minutes instead of weeks
• Competitive Bidding drives down costs and improves terms
• Transparent Process with clear evaluation criteria and selection logic

Risk Management

Effective risk management is crucial for sustainable mining operations:

• Credit Risk: Diversify across multiple traders and industries, set exposure limits, monitor performance continuously
• Market Risk: Manage interest rate exposure, maintain sufficient TRADE-S liquidity, avoid sector concentration
• Operational Risk: Maintain reliable systems, stay compliant with regulations, manage capital and liquidity effectively
• Model Risk: Regularly validate and update AI models based on performance feedback

Getting Started

Prerequisites

• Bittensor Wallet: Register and fund your wallet
• TRADE-S Tokens: Sufficient collateral for credit line issuance
• Technical Setup: Python environment and dependencies
• Risk Management: Understanding of credit risk principles

Step-by-Step Setup

1. Clone the Repository: Get the miner template code
2. Install Dependencies: Set up Python environment and packages
3. Configure Wallet: Set up Bittensor wallet and private keys
4. Customize Code: Implement your risk assessment and pricing models
5. Test Locally: Validate your miner before going live
6. Deploy: Start mining and begin processing requests

Resources

• Template Code: Start with the provided miner template
• API Documentation: Understand the protocol and data structures
• Community Support: Join discussions and get help
• Best Practices: Learn from successful miners
• Performance Monitoring: Track your success and optimize

UI Dashboard

When Supabase is configured, miners have access to a comprehensive web-based dashboard for managing their mining operations, viewing credit line requests, submitting offers, and tracking performance.

For complete UI dashboard documentation including:

• Dashboard overview and navigation
• Credit line requests management
• Offer tracking and submission
• Performance analytics and reporting
• Miner profile and details view
• Supabase integration details

See the comprehensive UI Dashboard Guide.

Ready to start mining? Explore the technical overview or learn about validators