Every basket is in one of three states: Active, Quarantined, or ExitOnly.
The state controls which exposure-increasing actions are allowed, while
risk-reducing and exit paths stay available.
#State action matrix
| Action | Active | Quarantined | ExitOnly |
|---|---|---|---|
| Mint, borrow, extend, flash | Subject to action pause | No | No |
| Redeem | Yes | Yes | Yes |
| Repay | Yes | Yes | Yes |
| Mature-loan recovery | Permissionless | Permissionless | Permissionless |
| Hook swap and compounding | Until pool decommission | Until pool decommission | Until unwind decommissions pool |
| Canonical LP NFT stake or increase | Subject to liquidity pause | No | No |
| Pending LP reward activation | Permissionless until decommission | Permissionless until decommission | Until pool decommissioned |
| LP reward claim or NFT unstake | Yes | Yes | Yes |
| Permanent-liquidity unwind | No | No | Permissionless per constituent |
| Treasury fee distribution | Permissionless trigger | Permissionless trigger | Permissionless trigger |
#Guardian containment
The guardian may pause exposure-increasing action groups and quarantine an active
basket. Quarantine blocks new exposure immediately while preserving repayment,
recovery, and exit paths. Only timelocked governance can release quarantine,
unpause, or enter the ExitOnly state.
Redemption is not guardian-pausable. A quarantined basket still lets users redeem, repay, recover mature loans, and claim rewards.
#ExitOnly is terminal under installed facets
ExitOnly disables new risk in the installed facets. It is a governed software
state — the Diamond remains upgradeable until final Diamond-cut authority is
removed. Once a basket is ExitOnly, anyone may
unwind its permanent liquidity per
constituent.
#No automatic keepers
No keeper runs automatically and no maintenance caller is guaranteed. Claims,
pending LP reward activation, basket-loan recovery, manual hook compounding,
treasury distribution, and ExitOnly unwind can remain pending indefinitely
until someone submits a transaction.
| Maintenance | Caller incentive |
|---|---|
| Basket-loan recovery | 20% of configured penalty backing |
| Dollar expired-risk recovery | Quoted keeper bounty |
| Claims, LP activation, compounding, treasury distribution, ExitOnly unwind | No protocol bounty |
Swap execution routes fees and attempts matched permanent-liquidity compounding atomically, but does not provide liveness when a pool has no swaps. Production operations must define monitoring, acceptable delays, escalation ownership, and guardian/governance fallbacks for inactive keepers.