Safety Module

The Safety Module plays a crucial role in safeguarding lenders against potential losses from delayed liquidations. If a trader's position incurs more losses than their collateral can cover, the Safety Module steps in to cover the shortfall, thus protecting the overall assets supplied by lenders.

Supplying Assets and Earning in the Safety Module

When supplying assets to the Unstoppable Margin DEX, lenders have the option to allocate their funds to the Safety Module. By doing so, they can earn a bonus on top of the standard Real Yield returns of the Base Pools.

Increased Rewards for Supplying

Lenders who choose to supply their assets in the Safety Module are expressing confidence in the efficiency of Unstoppable's liquidation engine and redundancy layers. As a result, they are rewarded with a higher portion of the Real Yield generated by the platform.

This additional reward serves as compensation for the increased risk taken by lenders in the event of a liquidation failure. The exact bonus percentage may vary based on market conditions and the total amount of assets supplied in each Safety Module pool.

Risk Considerations

While supplying to the Safety Module offers the potential for higher returns, lenders should be aware of the associated risks. In the unlikely event that the liquidation system fails to function as expected, the Safety Module will be the first line of defense to cover any resulting losses.

Lenders should carefully assess their risk tolerance and diversify their supplied assets between the Safety Module and the standard lending pools to manage their exposure.

Post-Liquidation Failure Protocols

Unstoppable has implemented a robust set of protocols to minimize the impact of a liquidation failure on lenders and the overall system.

Automatic Lockdown State

In the event of a failed liquidation, the Unstoppable system is designed to enter a protective lockdown state. This means that no new orders can be placed, effectively freezing the platform and preventing any further potential losses.

This automatic lockdown is a critical safety feature that helps to contain the impact of a liquidation failure and prevents the situation from escalating.

Maintaining Access to Funds

Despite the lockdown state, users retain the ability to close their existing positions and withdraw from the Margin Engine. As utilization allows it, lenders will also be able to withdraw their supplied assets from the lending pools. This ensures that lenders and traders can access their funds even in the event of a liquidation failure.

By allowing position closures and withdrawals, Unstoppable aims to provide users with the necessary liquidity to manage their exposure and make informed decisions about their assets.

System Recovery and Resolution

Once the lockdown state is triggered, the Unstoppable team will work diligently to identify the cause of the liquidation failure, resolve any underlying issues, and restore normal platform functionality.

During this process, the team will keep users informed through regular updates and provide guidance on any necessary actions that lenders or traders should take.

Continuous Monitoring and Improvement

Unstoppable is committed to ensuring the safety and stability of the platform for all users. To this end, the team continuously monitors the performance of the liquidation engine, the Safety Module, and all other critical components of the system.

Through ongoing analysis and stress testing, Unstoppable aims to identify potential weaknesses and implement improvements to further enhance the platform's resilience against liquidation failures and other adverse events.