Circuit Breakers

The presence of circuit breakers are common within centralized financial markets. Circuit breakers are designed to pause the system at certain risk thresholds in order to prevent market contagion. Exocore is a decentralized system that incorporates a Tendermint-based BFT consensus design. This design mechanism prioritizes correctness (safety) over liveness, meaning it places a higher value on ensuring the system operates correctly rather than maximizing its availability. As a result, it is possible to implement a decentralized, consensus-driven circuit breaker system within Exocore. This circuit breaker system could pause the network when certain risk thresholds or invariants are reached in order to prevent the risk of contagion.