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Chaofan Sun

Publications and source records attributed to Chaofan Sun.

2 recordsLinked to original sources

REACT: Physically and Chemically Consistent Reconstruction of Marine Active Tracers

Reconstructing global sea surface pH from sparse observations is critical for monitoring ocean acidification and understanding marine carbon cycling. Traditional assimilation and inverse models are physically grounded but costly for large-scale reconstruction. Recent black-box and physics-guided AI models improve efficiency, but are mainly designed for passive tracers, where the reconstructed variable is also the transported inventory. In contrast, pH is an active carbonate tracer: it is the prediction target, while dissolved inorganic carbon (DIC) is the conserved carbon inventory. This mismatch can produce low pH error while violating carbonate closure and source-free carbon conservation. To address this, we introduce \textbf{REACT}, a carbon-first reconstruction framework that decouples transport, active correction, and chemical decoding. REACT transports a latent carbonate state with a conservative advection--diffusion solver, captures non-conservative carbon-cycle variations with a source module, decodes the corrected state into pH, and constrains the output through carbonate equilibrium. This design keeps pH as the target while enforcing consistency on the underlying carbon state. On simulation data, REACT reduces pH NRMSE by (14.7%) and chemical consistency error by (24.0%) over the best baseline. Cross-temporal-scale evaluations show robustness against error accumulation from coarse to fine temporal scales, and ablation studies validate the effectiveness of each component.

cs.AI↗

Credit Valuation Adjustment with Replacement Closeout: Theory and Algorithms

The replacement closeout convention has drawn more and more attention since the 2008 financial crisis. Compared with the conventional risk-free closeout, the replacement closeout convention incorporates the creditworthiness of the counterparty and thus providing a more accurate estimate of the Mark-to-market value of a financial claim. In contrast to the risk-free closeout, the replacement closeout renders a nonlinear valuation system, which constitutes the major difficulty in the valuation of the counterparty credit risk. In this paper, we show how to address the nonlinearity attributed to the replacement closeout in the theoretical and computational analysis. In the theoretical part, we prove the unique solvability of the nonlinear valuation system and study the impact of the replacement closeout on the credit valuation adjustment. In the computational part, we propose a neural network-based algorithm for solving the (high dimensional) nonlinear valuation system and effectively alleviating the curse of dimensionality. We numerically compare the computational cost for the valuations with risk-free and replacement closeouts. The numerical tests confirm both the accuracy and the computational efficiency of our proposed algorithm for the valuation of the replacement closeout.

q-fin.MF↗