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research-note · Cairn research education

Why exit capacity is not price-loss insurance

A research note on finite execution commitments, expiry and shared-provider risk.

·Reference model only
Price shock to Liquidity loss to Admission responsePrice shocksynthetic modelLiquidity lossshow assumptionsAdmission responsenot a guarantee

Reserving a future buyer’s cash can reduce one execution constraint, but it cannot guarantee a transfer, oracle, issuer route or chain session. Providers may face the same market shock as the vault.

The research design therefore treats commitments as exclusive, finite and expiring. It does not market them as loss insurance. The Exit capacity workspace shows only the local accounting model.