Publication Library
LLMs Meet Finance - Fine-Tuning Foundation Models for the Open FinLLM Leaderboard
Description: This paper investigates the application of large language models (LLMs) to financial tasks. We fine-tuned foundation models using the Open FinLLM Leaderboard as a benchmark. Building on Qwen2.5 and Deepseek-R1, we employed techniques including supervised fine-tuning (SFT), direct preference optimization (DPO), and reinforcement learning (RL) to enhance their financial capabilities. The fine-tuned models demonstrated substantial performance gains across a wide range of financial tasks. Moreover, we measured the data scaling law in the financial domain. Our work demonstrates the potential of large language models (LLMs) in financial applications.
Created At: 20 April 2025
Updated At: 20 April 2025
Customizing Emotional Support - How Do Individuals Construct and Interact With LLM-Powered Chatbots
Description: Personalized support is essential to fulfill individuals' emotional needs and sustain their mental well-being. Large language models (LLMs), with great customization flexibility, hold promises to enable individuals to create their own emotional support agents. In this work, we developed ChatLab, where users could construct LLM-powered chatbots with additional interaction features including voices and avatars. Using a Research through Design approach, we conducted a week-long field study followed by interviews and design activities (N = 22), which uncovered how participants created diverse chatbot personas for emotional reliance, confronting stressors, connecting to intellectual discourse, reflecting mirrored selves, etc. We found that participants actively enriched the personas they constructed, shaping the dynamics between themselves and the chatbot to foster open and honest conversations. They also suggested other customizable features, such as integrating online activities and adjustable memory settings. Based on these findings, we discuss opportunities for enhancing personalized emotional support through emerging AI technologies.
Created At: 20 April 2025
Updated At: 20 April 2025
Malicious Code Detection in Smart Contracts via Opcode Vectorization
Description: With the booming development of blockchain technology, smart contracts have been widely used in finance, supply chain, Internet of things and other fields in recent years. However, the security problems of smart contracts become increasingly prominent. Security events caused by smart contracts occur frequently, and the existence of malicious codes may lead to the loss of user assets and system crash. In this paper, a simple study is carried out on malicious code detection of intelligent contracts based on machine learning. The main research work and achievements are as follows: Feature extraction and vectorization of smart contract are the first step to detect malicious code of smart contract by using machine learning method, and feature processing has an important impact on detection results. In this paper, an opcode vectorization method based on smart contract text is adopted. Based on considering the structural characteristics of contract opcodes, the opcodes are classified and simplified. Then, N-Gram (N=2) algorithm and TF-IDF algorithm are used to convert the simplified opcodes into vectors, and then put into the machine learning model for training. In contrast, N-Gram algorithm and TF-IDF algorithm are directly used to quantify opcodes and put into the machine learning model training. Judging which feature extraction method is better according to the training results. Finally, the classifier chain is applied to the intelligent contract malicious code detection.
Created At: 20 April 2025
Updated At: 20 April 2025
Option Pricing with Convolutional Kolmogorov-Arnold Networks
Description: With the rapid advancement of neural networks, methods for option pricing have evolved significantly. This study employs the Black-Scholes-Merton (B-S-M) model, incorporating an additional variable to improve the accuracy of predictions compared to the traditional Black-Scholes (B-S) model. Furthermore, Convolutional Kolmogorov-Arnold Networks (Conv-KANs) and Kolmogorov-Arnold Networks (KANs) are introduced to demonstrate that networks with enhanced non-linear capabilities yield superior fitting performance. For comparative analysis, Conv-LSTM and LSTM models, which are widely used in time series forecasting, are also applied. Additionally, a novel data selection strategy is proposed to simulate a real trading environment, thereby enhancing the robustness of the model.
Created At: 20 April 2025
Updated At: 20 April 2025
Is the difference between deep hedging and delta hedging a statistical arbitrage
Description: The recent work of Horikawa and Nakagawa (2024) claims that under a complete market admitting statistical arbitrage, the difference between the hedging position provided by deep hedging and that of the replicating portfolio is a statistical arbitrage. This raises concerns as it entails that deep hedging can include a speculative component aimed simply at exploiting the structure of the risk measure guiding the hedging optimisation problem. We test whether such finding remains true in a GARCH-based market model, which is an illustrative case departing from complete market dynamics. We observe that the difference between deep hedging and delta hedging is a speculative overlay if the risk measure considered does not put sufficient relative weight on adverse outcomes. Nevertheless, a suitable choice of risk measure can prevent the deep hedging agent from engaging in speculation.
Created At: 20 April 2025
Updated At: 20 April 2025