Withdrawal Queue & Pool Health Gates
1. Queue Mechanics
After the cooldown expires, the LP can submit a withdrawal request. Instead of instant execution, withdrawals enter a FIFO queue that is gated by system health checks. This prevents mass simultaneous withdrawals from destabilising the protocol during stress periods.
| Queue State | Description |
|---|---|
| NORMAL | Queue processes withdrawals in FIFO order. Each withdrawal executes within minutes (Reserve Pool source) or hours (Yield Pool source). |
| SLOW | Queue processes with hourly cap per pool. Withdrawals above the cap wait for the next processing cycle. Triggered when Reserve Pool is between 30–60% of target. |
| PAUSED | No withdrawals process. All requests remain queued with their position preserved. Triggered by critical system conditions. |
2. Queue Gate Conditions
The queue state is determined by the most restrictive condition that currently applies:
| Condition | Queue State | Rationale |
|---|---|---|
| Reserve Pool > 80% of target AND no system stress | NORMAL | Healthy state; withdrawals process freely |
| Reserve Pool 60–80% of target | NORMAL (flagged) | Mild deficit; withdrawals process but Ops monitors; Yield deployments paused |
| Reserve Pool 30–60% of target | SLOW | Significant deficit; slow withdrawals; Yield Pool recall active; hourly cap applies |
| Reserve Pool < 30% of target | PAUSED (redirected to Yield Pool) | Critical deficit; Reserve protected for Phase 1; aggressive Yield recall active |
| State Engine at RESTRICT | SLOW | System under elevated stress; slow all outflows |
| State Engine at HALT | PAUSED | System in emergency; no outflows until recovery |
| VaR > 80% | PAUSED | Reserve Pool under VaR stress; preserve all liquidity |
| Multiple overrides active | Most restrictive wins | E.g., if Reserve is at 50% (SLOW) but State is HALT (PAUSED), queue is PAUSED |
3. Slow Queue Processing Rules
When the queue is in SLOW state, withdrawals are processed with the following constraints:
| Parameter | Value | Rationale |
|---|---|---|
| Max withdrawal per hour per pool | $10K USD equiv | Limits drain rate to give natural flow and rebalancing time to replenish |
| Processing order | FIFO (First In, First Out) | Fair; oldest requests processed first |
| Split processing | Enabled | If a $25K withdrawal is at the front of the queue, process $10K now, remaining $15K in next cycles |
| Notification | LP notified of estimated wait time | Transparency; LP can cancel if wait is too long |
4. Queue Pause Recovery
When the queue is PAUSED, no withdrawals process. The queue automatically resumes when ALL pause conditions are cleared:
- Reserve Pool recovers above 30% of target (may require Yield Pool recall per Smart Rebalancing Section 8, natural Phase 1 settlement inflow, or external top-up).
- State Engine recovers to NORMAL or PROTECT.
- VaR drops below 80%.
When the queue resumes, it processes in FIFO order from where it left off. No withdrawals lose their position due to a pause.