Omega Watermark
NOTE // December 23, 2025

Mathematical Foundations

Algorithms and theoretical basis of SCARCITY.

Mathematical Foundations

1. Bandit Algorithms (UCB)

We use Upper Confidence Bound to balance exploration and exploitation.

UCB_i(t) = μ_i(t) + c · √(ln(t) / n_i(t)) + γ · D_i(t) - η · C_i(t)

  • μ_i(t): Empirical Mean Reward.
  • c: Confidence parameter (Exploration).
  • D_i(t): Diversity Score.
  • C_i(t): Computational Cost.

2. Diversity Scoring

To ensure the model learns diverse features, we penalize redundancy using Inverse Coverage.

D_i = 1 / √(1 + c_i)

  • c_i: Coverage count (How many times has variable i been used?).

3. Reward Shaping

The reward signal r is not just accuracy; it is a composite of multiple objectives:

r = α · gain + β · diversity - γ · latency - δ · cost


4. Meta-Learning (Reptile)

We use the Online Reptile update rule for fast adaptation:

θ_t+1 = θ_t + α_t · (φ_i - θ_t)

  • Adaptive Learning Rate: The rate α decays over time but boosts when high rewards are found.

    α_t = α_0 · e^(-λt) · (1 + β · reward_t)


5. Sketch Operators

Polynomial Sketch Approximates polynomial expansion using CountSketch (Memory efficient).

poly_sketch(x, d) ≈ Σ (|S| ≤ d) c_S · Π_(i ∈ S) x_i

Tensor Sketch Approximates the Kronecker product x₁ ⊗ x₂ using hash-based convolution.