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Mengzhong Ma

Publications and source records attributed to Mengzhong Ma.

3 recordsLinked to original sources

Towards Trustworthy Physical AI: From Theory to Practice Across Life Cycle

Physical AI refers to AI systems that understand, reason about, and act in accordance with the physical world and its underlying laws, dynamics, and constraints. Unlike conventional AI systems, physical AI interacts continuously with uncertain physical environments, and its actions produce consequences that are physically irreversible. As existing trustworthy AI frameworks have been developed primarily for digital AI systems, they do not fully capture the distinctive challenges of physical AI, such as physical safety, cyber-physical security, and physical manufacturing process. To address this gap, we present a survey of trustworthy physical AI principles. First, we characterize the core capabilities and challenges of physical AI. Second, we examine the role of physics in AI. Third, we trace the end-to-end physical AI life cycle across five core stages and introduce Trustworthy Physical AI Operationalization (T-PAIO). Fourth, we develop the Trustworthy Physical AI (T-PAI) framework, a theoretical framework that organizes key trustworthiness principles and provides a foundation for governing trustworthy physical AI systems.

cs.AI

One Rising Ship Sinks Other Ships: Cross-Chain Negative Spillovers in Crypto Markets

We document the first systematic evidence of negative spillover effects in crypto asset returns across blockchains. Using on-chain data from Ethereum, Solana, Binance Smart Chain, Arbitrum, and Avalanche (2022-2025), we show that surges on one chain often coincide with declines on others, in contrast to the positive co-movements typical of equity markets. These spillovers intensify during attention shocks, proxied by chain activity and extreme return events, and persist after controlling for global equity returns, interest rates, and Bitcoin. Nonlinear factor models reveal that attention-driven capital reallocation, rather than common information, underlies these dynamics. Our findings introduce a new form of cross-market linkage, attention-induced substitution, that shapes risk transmission in crypto markets. The results carry implications for portfolio diversification, systemic risk measurement, and regulation of token launches that may trigger cross-chain capital flight.

q-fin.PR

Exploring the Impact: How Decentralized Exchange Designs Shape Traders' Behavior on Perpetual Future Contracts

In this paper, we analyze traders' behavior within both centralized exchanges (CEXs) and decentralized exchanges (DEXs), focusing on the volatility of Bitcoin prices and the trading activity of investors engaged in perpetual future contracts. We categorize the architecture of perpetual future exchanges into three distinct models, each exhibiting unique patterns of trader behavior in relation to trading volume, open interest, liquidation, and leverage. Our detailed examination of DEXs, especially those utilizing the Virtual Automated Market Making (VAMM) Model, uncovers a differential impact of open interest on long versus short positions. In exchanges which operate under the Oracle Pricing Model, we find that traders primarily act as price takers, with their trading actions reflecting direct responses to price movements of the underlying assets. Furthermore, our research highlights a significant propensity among less informed traders to overreact to positive news, as demonstrated by an increase in long positions. This study contributes to the understanding of market dynamics in digital asset exchanges, offering insights into the behavioral finance for future innovation of decentralized finance.

q-fin.TR