Solvency, transitions and recovery

Core evaluates every configured profile independently and reports a single global health state. The system is designed so that a bad or unavailable profile cannot be hidden behind surplus in another profile, and so that collateral exits stay safe after impairment.

#Profile and series lifecycle

Dollar profile modes are Inactive, Active, ReduceOnly, and Retired. Governance activates configured profiles, may move an active profile into reduce-only runoff, and may permanently retire it only from ReduceOnly. Retirement is irreversible.

Volatile profiles additionally manage series states:

Successor creation and old-series recovery never make the claims of two series interchangeable.

#Global health

Core reports global health as one of:

#The 48-hour latch

Global collateral exits remain latched after impairment and require 48 continuous healthy hours, advanced by explicit checkpoints, before ordinary exits become available again. Any renewed failure resets the window. No background process advances the health machine — keepers or users must checkpoint.

#Pegged redemption quarantine

Pegged redemption layers its own quarantine on top of global health. Any unresolved downside series transition, unavailable health, or impaired profile blocks every pegged profile. Resolving the transition does not reopen redemption immediately; a checkpoint starts its own 48-hour continuous-health delay. peggedRedemptionStatus reads the state; checkpointPeggedRedemption advances it.

#Expired-risk recovery

Expired volatile-series risk recovery is permissionless. It burns the required senior and Risk Share claims, settles the expired recovery book, and may issue successor pairs according to the selected recovery mode.