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guide · Cairn research education

What happens when liquidity disappears?

Why new exposure can pause without automatically forcing a sale of existing positions.

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

Cairn’s admission controller compares gross stock exposure with a stressed executable-depth hypothesis, capital ceilings, issuer concentration, matched financing and a pilot ceiling. If the cap falls, new growth can stop.

A lower cap is not a liquidation instruction. Existing positions need valid prices, executable routes and a disclosed recovery process. Reproduce the crisis preset in Risk Lab.