Finance Notes Reorganization Plan

Date: 2026-04-18

Problem

The finance notes have two structural issues:

Forward references to DeFi from foundational notes. 13 of 16 non-DeFi notes reference AMM/LP/IL concepts. A reader learning volatility shouldn’t need to know what an AMM is. Knowledge should flow forward in the reading order, not backward.
Specific clarity gaps. Reader feedback identified missing definitions (broker vs dealer, ATS/MTF), unexplained conventions (iid returns, sqrt(365) scaling), and missing foundational notes (trade types, IPO process).

Reverse the direction of cross-references: foundational notes teach their topic cleanly; DeFi notes link back to foundational topics.

volatility.md + code/volatility/notebook.py — remove LP break-even, AMM fee rate, 4 DeFi wikilinks. Notebook: replace LP sections with rolling vol windows, VIX overlay, regime detection.
the-greeks.md — remove “LP-gamma connection” from title, strip LP-as-short-straddle section, clean 6 DeFi wikilinks.
options-basics.md + code/options-payoffs/notebook.py — remove LP preview section. Notebook: move Section 4 (“Short Straddle vs IL”) to DeFi.
Microstructure batch — ho-stoll: remove “Connection to AMM IL” section. kyle-lambda: remove AMM price impact comparison. spread-decomposition: remove Uniswap v3/v4 fee mechanism. trading-fundamentals: trim “From Pit to Protocol” to brief forward pointer. glosten-milgrom: remove bonding curve comparison.
settlement-and-clearing.md + market-fundamentals.md — restructure DeFi contrast paragraphs into brief forward pointers.
DeFi notes gain back-links — impermanent-loss.md gains gamma mapping. lp-profitability.md gains volatility connection. constant-product-amm.md gains Ho-Stoll, Kyle, spread-decomp mappings. bonding-curves.md gains Glosten-Milgrom adverse selection mapping.
code/defi-lp-profitability/notebook.py — gains moved LP visualizations.
study-guide.md — update phase descriptions.

Note	Fix
`market-fundamentals.md`	Define “cost of carry” before Contango section
`market-fundamentals.md`	Expand broker vs dealer (agent vs principal)
`market-fundamentals.md`	Expand ATS/MTF/CCP acronyms on first use
`market-fundamentals.md`	Expand greenshoe mechanism
`market-fundamentals.md`	Expand IDO/IEO/ICO definitions
`settlement-and-clearing.md`	Clarify margin scope (CCP vs broker vs Reg T)
`settlement-and-clearing.md`	Add forward ref to order-books for order types
`trading-fundamentals.md`	Rewrite “five numbers” as two primitives + three derived
`volatility.md`	Explain iid assumption inline + Prerequisites callout
`volatility.md`	Explain sqrt(365) via variance additivity

Item	Why
`settlement-and-clearing.md` CLS expansion	Exact PvP mechanism, funding window, BIS numbers
NEW `trade-types.md`	Agency vs principal, block trades, algo execution, PFOF
NEW IPO process note	S-1, roadshow, book building, direct listings, SPACs