Safety Module

The Safety Module plays a critical role in safeguarding LPs against potential losses from delayed liquidations. If a trader's position incurs more losses than their collateral, the Safety Module steps in to cover the shortfall, thus protecting overall LP contributions.

Staking and Yields in the Safety Module

LPs can choose to open their liquidity positions in the Safety Module to earn a bonus on the Real Yield returns. By staking in the safety module, LPs are essentially expressing confidence in the efficiency of our liquidation engine and redundancy layers.

Although this carries more risk if the system fails to function as expected, stakers are compensated with a substantial portion of the Real Yield for taking this risk.

Post-Failed Liquidation Protocols

In the event of a failed liquidation, the Unstoppable system is designed to enter a protective lockdown state. This means no new orders can be placed, minimizing additional risk exposure.

However, users retain the ability to close existing positions and withdraw their liquidity, ensuring access to their funds. This automatic lockdown is a critical safety feature, safeguarding both LPs and traders by preventing further escalation of potential losses and maintaining the integrity of the trading ecosystem.