Circuit Breaker

Security and stability

Circuit Breaker aims to protect Traders and FLP holders under temporary market fluctuations.

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.

Circuit Breaker does NOT apply when the ratio of long-to-short open interest is larger than the set value.

See the table below for details:

Cronos

Token	Max Short Open Interest	Max Short-to-long Open Interest Ratio
AAVE	USD 150,000	2
ADA	USD 150,000	2
ATOM	USD 150,000	2
BCH	USD 150,000	2
BTC	USD 200,000	2
CRO	USD 150,000	2
DOGE	USD 150,000	2
ETH	USD 200,000	2
HBAR	USD 150,000	2
LION	USD 150,000	2
LTC	USD 150,000	2
NEAR	USD 150,000	2
PAXG	USD 150,000	2
PENGU	USD 150,000	2
PEPE	USD 150,000	2
SHIB	USD 150,000	2
SOL	USD 150,000	2
SUI	USD 150,000	2
TRUMP	USD 150,000	2
UNI	USD 150,000	2
WIF	USD 150,000	2
XRP	USD 150,000	2

zkSync Era

Token	Max Short Open Interest	Max Short-to-long Open Interest Ratio
BTC	USD 200,000	3
ETH	USD 200,000	3
ZK	USD 100,000	3

Cronos zkEVM

Token	Max Short Open Interest	Max Short-to-long Open Interest Ratio
BTC	USD 200,000	2
vETH	USD 200,000	2

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):

There will be a manual feature to override the predetermined timeout period if it requires more time to implement a solution.

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.