What can go wrong
Every failure has a rule, and every rule is visible on the market page when it applies.
| What happens | What you see | What the protocol does |
|---|---|---|
| Too many prices go stale | A STALE badge on the market | Closes only, at the last good level, until more than 80% of the index's weight has fresh prices again |
| The market moves more than 25% in 15 minutes | A HALTED badge with a countdown | Closes only for 30 minutes, then opens resume with spreads doubled for 2 hours |
| A market's cap is reached | "Market cap reached" on the trade button, a Battle-Scarred cap bar | Opens that add exposure are refused; opens on the other side still work |
| The reserve is short of USDC while a swap is pending | "Reserve limit reached" | Opens that add exposure wait until the swap lands |
| The keeper stops posting | The level stops updating | Opens are refused once the last post is 6 minutes old; closes still work |
| A short gaps past its collateral | A liquidation on your receipt | The reserve pays the difference and records it as bad debt on the Reserve page |
| A listed index stays stale for 7 days | A DELISTED badge | Positions settle at the last good level, with no spread and no fee |
What cannot happen
- The reserve cannot take on more exposure than its caps allow.
- The keeper cannot change parameters, open markets, or move reserve funds anywhere except winning closes, liquidations and the burn path.
- A single level post cannot move more than 10%.