# Circuit Breaker {% hint style="success" %} Circuit Breaker aims to protect Traders and FLP holders under temporary market fluctuations. {% endhint %} ## What is Circuit Breaker? Circuit Breaker is designed to minimize the impact of market volatility on trading activity and protect users from significant losses. When triggered, Circuit Breaker will pause trading activity and prevent any new orders from being placed until market conditions stabilize. ## When will Circuit Breaker be triggered? Circuit Breaker will be triggered under two conditions: ### Condition 1: Market volatility Our keeper bot monitors individual token price in real time. When there is a 20% drop in price of token(s) within 5 minutes, Circuit Breaker will be triggered and applied to the affected token(s). ### Condition 2: Imbalanced short-to-long open interest ratio When a token's short open interest is over a set threshold, and if the ratio of short-to-long open interest is larger than a set value, Circuit Breaker will be triggered and users will not be able to open short positions on the token(s) temporarily. {% hint style="info" %} Circuit Breaker does NOT apply when the ratio of long-to-short open interest is larger than the set value. {% endhint %} See the table below for details: **Cronos**
TokenMax Short Open InterestMax Short-to-long Open Interest Ratio
AAVEUSD 150,0002
ADAUSD 150,0002
ATOMUSD 150,0002
BCHUSD 150,0002
BTCUSD 200,0002
CROUSD 150,0002
DOGEUSD 150,0002
ETHUSD 200,0002
HBARUSD 150,0002
LIONUSD 150,0002
LTCUSD 150,0002
NEARUSD 150,0002
PAXGUSD 150,0002
PENGUUSD 150,0002
PEPEUSD 150,0002
SHIBUSD 150,0002
SOLUSD 150,0002
SUIUSD 150,0002
TRUMPUSD 150,0002
UNIUSD 150,0002
WIFUSD 150,0002
XRPUSD 150,0002
**zkSync Era**
TokenMax Short Open Interest Max Short-to-long Open Interest Ratio
BTCUSD 200,0003
ETHUSD 200,0003
ZKUSD 100,0003
**Cronos zkEVM**
TokenMax Short Open InterestMax Short-to-long Open Interest Ratio
BTCUSD 200,0002
vETHUSD 200,0002
## What will happen when Circuit Breaker is triggered? ### Condition 1: Market Volatility Trading activities of the affected pair(s) will be paused for 15 minutes. During the period: * You will not able to open new market order for the affected token(s) * You will not able to open new limit order for the affected token(s) * You will be able to close existing position for the affected token(s) It has a predetermined time-out period for **15 minutes**, after which it will be automatically lifted and trading activities will resume. You will see the following pop-up for the affected trading pair(s):
{% hint style="warning" %} There will be a manual feature to override the predetermined timeout period if it requires more time to implement a solution. {% endhint %} ### Condition 2: Imbalanced short-to-long open interest ratio Opening short position on the affected trading pair will be prohibited until the triggering conditions are not longer satisfied. ## How will this benefit me as a Fulcrom user? ## As a Trader When token price drops for 20% in 5 mins, there is a high chance that the price spread is large, causing users to accidentally open trade or swap tokens at an unfavourable price. Circuit Breaker protects traders from sudden and drastic price movements. They provide a temporary halt in trading, which allows investors to regroup, evaluate their strategies, and make more informed decisions. This helps prevent investors from making rushed or emotionally-driven trades during highly volatile market conditions. ## As a FLP holder Circuit Breaker will help stabilize FLP status from market volatility and prevent the liquidity on our FLP pool to be drained away.