Skip to content
Preprint

FedChronos: Federated Fine-Tuning of Time-Series Foundation Models for Privacy-Preserving Commodity Price Forecasting

Aug 2026 · 0 citations · 32 references
Computer Science

TL;DR

FedChronos is introduced, a framework for federated parameter-efficient fine-tuning of an already pre-trained TSFM, a setting that existing federated time-series work has not addressed, since prior methods either pre-train from scratch or align prototypes rather than adapt a fixed backbone.

Abstract

Time-series foundation models (TSFMs) such as Chronos have demonstrated strong forecasting capabilities across domains, yet adapting them to institutionally fragmented settings, where data cannot be centralized due to regulatory, competitive, or sovereignty constraints, remains unexplored. We introduce FedChronos, a framework for federated parameter-efficient fine-tuning of an already pre-trained TSFM, a setting that existing federated time-series work has not addressed, since prior methods either pre-train from scratch or align prototypes rather than adapt a fixed backbone. Our approach applies Low-Rank Adaptation (LoRA) to the Chronos-T5 backbone and trains across distributed clients using FedAvg and FedProx, transmitting only lightweight adapter weights (384~KB per round, an 86$\times$ reduction over full-model exchange). We evaluate FedChronos on daily commodity prices from 15 Indian agricultural markets across 9 states, a naturally non-IID federated setting, and find that na\"ive LoRA fine-tuning overfits substantially on small per-client datasets, dropping below zero-shot performance. We further observe that differential privacy (DP) noise can act as implicit regularization and counteract this overfitting: in our experiments the strongest configuration ($\varepsilon = 5$) reduces mean absolute percentage error (MAPE) by 31% over zero-shot and 26% over the best traditional baseline, while bounding each round's information leakage via per-round $(\varepsilon, \delta)$-differential privacy. Because the model is compact and the updates are small, the approach also suits edge AI deployments where both the network link and the client device are constrained. Overall, our findings suggest that privacy and accuracy can be complementary rather than competing objectives in federated TSFM fine-tuning.

View source

Similar papers

Preprint Jul 2026

FedMark-FM: Auditable, Risk-Adjusted Data Markets for Federated Foundation-Model Adaptation

Federated foundation-model adaptation increasingly relies on heterogeneous private artifacts (retrieval corpora, prompts and demonstrations, LoRA adapters, preference and safety data, and update sketches), yet existing federated-learning incentive mechanisms price clients as homogeneous data or update providers. This assumption poorly matches foundation-model pipelines, where contribution value is heterogeneous, non-IID, pipeline-dependent, privacy-constrained, and vulnerable to strategic behavior. We propose FedMark-FM, an auditable, risk-adjusted data-market framework that models clients as sellers of typed artifacts, estimates marginal contribution with S3Val, a stratified, uncertainty-aware Shapley estimator supporting pipeline-ordered valuation, and converts lower-confidence-bound values into budget-feasible payments penalizing duplication, sybil splitting, poisoned adapters, privacy-budget gaming, and cost inflation. We evaluate FedMark-FM-Bench across FEVER retrieval, held-out generator-backed RAG, and trained PEFT/LoRA tracks. Under a held-out prompt-injection poisoner, FedMark-FM improves downstream accuracy by 7.5-8.1 points over volume, leave-one-out, and FL-Shapley while selecting zero strategic clients. Split-conformal calibration reaches full lower-bound coverage at mean width 0.0141, versus 0.33 for naive intervals. We prove pipeline-ordered valuation is the unique credit rule respecting serving causality, and show it materially changes credit assignment (Spearman 0.76, selected-set overlap 0.67) while leaving held-out task quality unchanged; the market preserves rare specialists with audit-ready ledgers at 200-1000-client scale. FedMark-FM shows incentives for federated foundation models can be engineered as auditable data infrastructure coupling valuation, mechanism design, privacy interfaces, and pipeline-order semantics.

Phat T. Tran-Truong, X. Le, Minh N. H. Nguyen · 0 citations
Preprint Jul 2026

Federated Foundation Models Fine-Tuning with Heterogeneous Compressed Clients

Federated learning of foundation models faces a fundamental resource-asymmetry challenge: the institutions holding the most valuable domain-specific data cannot host billion-parameter models. Existing heterogeneous federated approaches attempt to bridge this gap through parameter-efficient tuning, model pruning, or knowledge distillation, yet each trades away a critical property, whether full-model memory reduction, architectural self-containedness, or representational fidelity, leaving the core tension unresolved. We propose FedSLM, a parameter-centric framework for federated fine-tuning with heterogeneous compressed clients. FedSLM uses SVD-based decomposition to produce self-contained client models, whose low-rank subspaces form nested manifolds that are structurally compatible for aggregation. It then applies a two-stage protocol that synchronizes lightweight adapters within compression groups and fuses full-rank reconstructions across groups via structural alignment. Finally, a weak-to-strong elicitation step with auxiliary confidence loss transfers the aggregated knowledge to the full-scale server, while an explicit bias--variance trade-off mitigates compression artifacts. We provide theoretical guarantees for adapter-level aggregation, subspace-alignment bounds for cross-group fusion, and a characterization of how the confidence loss mitigates weak-supervision noise. Experiments on natural language and vision--language benchmarks show that FedSLM outperforms existing federated baselines under both IID and non-IID partitions, while client models operate at roughly 50% of the GPU memory required by the full model.

Shengkun Zhu, Jinshan Zeng, Zhihua Allen-Zhao et al. · 0 citations
Preprint Aug 2026

Personalized Federated Sparse Adaptation of Time-Series Foundation Models

Federated adaptation of time-series foundation models (TSFMs) is attractive for building energy forecasting because meter data are private, distributed, and highly non-IID. However, a single parameter-sharing strategy is unlikely to serve all pretrained TSFMs or building clients: fully shared adapters can suppress building-specific temporal behavior, while fully local adaptation discards cross-building transfer. We propose a personalized federated sparse adaptation framework with a heterogeneous temporal mixture-of-experts (MoE) adapter placed after the pretrained TSFM representation. A sequence-level router maps each 168-hour context window to a top-$k$ subset of experts specialized for periodicity, long-range interactions, local variation, trend-residual structure, and multi-resolution behavior. We compare global FL, local training, and personalized FL variants with globally shared or client-private expert banks. Across 50 buildings and three TSFM backbones, personalization consistently outperforms Global FL-MoE and Local MoE, while the best sparse-adaptation strategy varies by backbone and metric. Routing behavior further reveals client-level expert specialization, expert concentration, and near-uniform routing across backbones, showing that federated TSFM adaptation should be both client-aware and backbone-aware.

Priyanka Nihalchandani, Naman Srivastava, Varun Ojha et al. · 0 citations
Conference Jul 2026

Privacy-Preserving Federated Learning Framework for Robust Model Training Under Non IID Data Distributions

Federated learning is a decentralised machine-learning approach in which several clients jointly build a shared model without moving their raw data to one location. Rising concerns around privacy, tightening regulation, and restrictions on how data may be owned or shared have made this approach increasingly attractive in practice. Although federated learning lowers privacy exposure relative to centralised training, deploying it in practice is complicated by clients whose data are unevenly distributed and non-identically distributed, by clients that participate inconsistently, and by training that can converge unpredictably. To obtain global models that train reliably and consistently even when client data are heterogeneous, this work puts forward a federated learning system built around privacy preservation. The design follows a client–server pattern in which a coordinating server aggregates updates from local models using weights that account for imbalance among participants. The behaviour of the resulting system is examined methodically across several data-distribution regimes — IID, mildly non-IID, and severely non-IID. The experiments show that the framework converges reliably and delivers predictive accuracy that holds up well, especially in the more difficult non-IID cases. Compared with conventional federated learning baselines, the approach shows greater robustness and steadier performance across successive training rounds. Because it is simple to implement, repeatable, and built with real deployment in mind, the architecture suits privacy-sensitive, decentralised use cases such as distributed intelligent systems, industrial monitoring, and healthcare analytics.

Shyam Patel, S. Khan · 0 citations
Preprint Jul 2026

Robust Federated Learning Under Real-World Client Churn

FeLiX is presented, an FL orchestration framework that minimizes wall-clock time-to-target accuracy on live interaction streams and achieves near-oracular performance in real-world settings.

Dhruv Garg, Neha Lakhani, Debopam Sanyal et al. · 0 citations