Cooldown Timer System
1. How the Cooldown Works
When a Reserve Pool's deviation crosses the Soft Threshold, a cooldown timer starts for that specific pool. The timer runs for the configured cooldown duration. During this period, no Phase 2 action is taken. The system monitors the Reserve Pool balance continuously.
| Event | System Behaviour |
|---|---|
| Soft Threshold crossed | Cooldown timer starts. Phase 2 is NOT triggered. Reserve Pool continues to receive and send Phase 1 flows normally. |
| Position drops below Soft during cooldown | Timer cancelled. No Phase 2. Position resolved by natural reverse flow. Log as "Cooldown Saved". |
| Position stays in Soft Zone when timer expires | Phase 2 fires. Rebalance the current position (which may be smaller than when the timer started due to partial reverse flow). |
| Position crosses Hard Threshold during cooldown | Timer cancelled. Phase 2 fires immediately. Position has grown beyond the safe waiting range. |
| Position crosses Emergency Threshold during cooldown | Timer cancelled. Emergency RFQ fires immediately. |
| VaR > 80% during cooldown | Timer cancelled. Emergency RFQ fires. VaR override always wins. |
| State Engine moves to RESTRICT/HALT during cooldown | Timer cancelled. Phase 2 fires immediately for that corridor. |
2. Cooldown Timer State Machine
Each Reserve Pool per corridor maintains a cooldown state that can be in one of four states:
| State | Description | Transitions |
|---|---|---|
| IDLE | Deviation below Soft Threshold. No timer running. | → COOLING if Soft crossed |
| COOLING | Timer running. Waiting for reverse flow or timer expiry. | → IDLE if drops below Soft (saved) · → FIRE if timer expires · → HARD_FIRE if Hard crossed · → EMERGENCY if Emergency crossed or VaR > 80% |
| FIRE | Phase 2 triggered (cooldown expired or Hard crossed). Executing external rebalance. | → IDLE after Phase 2 completes |
| EMERGENCY | Emergency RFQ triggered. Reserve Pool VaR protocol active. | → IDLE after emergency clearance completes |
3. Time-of-Day Awareness
3.1 Flow Pattern Profiles
The cooldown duration is not fixed — it adapts based on the time of day. During hours when bilateral (offsetting) flow is expected, the cooldown is longer, giving more time for the natural offset. During hours when flow is primarily one-directional or volume is low, the cooldown is shorter because the probability of offset is lower.
| Time Bracket | Profile | Cooldown Modifier | Rationale |
|---|---|---|---|
| Peak Bilateral | High probability of offsetting reverse flow within hours | Base cooldown (full duration) | Morning remittance typically offset by afternoon commerce; wait is highly valuable |
| Off-Peak | Low volume; reverse flow unlikely in near term | 50% of base cooldown | Not worth waiting long; reduced flow means offset is unlikely |
| Weekend / Holiday | Minimal or no flow expected | No cooldown (fire immediately) | No offsetting flow coming; waiting only increases risk exposure with no benefit |
3.2 Per-Corridor Configuration
Peak hours for Asian corridors align with Asia business hours (approximately UTC+7 to UTC+8 morning through afternoon). These are starting configurations and should be refined based on observed flow data post-launch.
| Corridor | Peak Bilateral (UTC) | Off-Peak (UTC) | Base Cooldown | Off-Peak Cooldown |
|---|---|---|---|---|
| USD-IDR | 00:00 – 12:00 | 12:00 – 00:00 | 4 hours | 2 hours |
| USD-SGD | 00:00 – 10:00 | 10:00 – 00:00 | 2 hours | 1 hour |
| MYR-IDR | 00:00 – 12:00 | 12:00 – 00:00 | 4 hours | 2 hours |
3.3 Weekend & Holiday Calendar
The system maintains a holiday calendar per corridor. On weekends and gazetted public holidays for the relevant countries (Indonesia for IDR, Singapore for SGD, Malaysia for MYR), the cooldown is disabled and Phase 2 fires immediately on Soft Threshold breach. The holiday calendar is maintained as a configurable off-chain parameter updated quarterly by Ops.