Why is the reported maximum drawdown only 1.205%?

Is this realistic for a crypto market-neutral strategy?

The reported maximum drawdown of approximately 1.205% was measured over the full operating period of the underlying strategy.

The strategy is designed around a market-neutral capital allocation framework, rather than directional exposure to crypto assets. During periods of elevated volatility, including the October 10 / October 11 liquidation events and broader market sell-offs, the strategy experienced limited impact.

Most of the observed drawdown was primarily related to execution costs, including trading fees, slippage, and bid-ask spreads during position building, arbitrage execution, rebalancing, and position reduction. In practice, this type of drawdown is closer to initial ramp-up and execution cost rather than directional market loss.