> For the complete documentation index, see [llms.txt](https://own-protocol.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://own-protocol.gitbook.io/docs/pool-halt-and-exit.md).

# Pool Halt & Exit

## Pool Halt & Exit: User Protection In Case Of Rebalancing Failures

Own Protocol includes a **Pool Halt mechanism** as a critical failsafe to ensure **user funds are never locked**, even in the rare event of rebalancing failure by LPs.

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### When Does a Pool Halt Happen?

A pool can be halted when:

* LPs **fail to rebalance** the pool for a full cycle (e.g., due to non-compliance or inactivity)
* The on-chain collateral **does not cover price movement**, preventing the next cycle from advancing

These conditions indicate a breakdown in the rebalancing process and require external intervention.

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### Who Can Trigger a Halt?

* **Anyone** can trigger a Pool Halt once the pool has been in a stuck state for a **minimum of 5 days**.
* This decentralized trigger ensures that the system remains user-protective and censorship-resistant.

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### What Happens During a Pool Halt?

Once a halt is triggered:

* **All users can exit the pool** and claim their reserve tokens
* Claims are processed at the **last successfully rebalanced price** of the asset
* No new deposits or rebalancing operations are allowed

This ensures a clean and fair exit for all users, based on the last known valid pool state.

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### Why This Matters

* Ensures **no user is ever stuck** due to LP failure or protocol issues
* **Aligns incentives** for LPs to stay active and compliant
* Maintains **decentralized user control** over pool resolution

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### Design Philosophy

The Pool Halt mechanism reflects Own’s core commitment to:

* **User-first design** — safety and exit guarantees in all scenarios
* **Decentralized operation** — no central authority needed to resolve issues
* **Composability with confidence** — integrations can trust Own’s liveness and recoverability

By giving users a structured exit path, Own guarantees protocol integrity under every condition.

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### TL;DR

| Feature             | Description                                                         |
| ------------------- | ------------------------------------------------------------------- |
| **Trigger**         | Anyone can initiate after 5 days of rebalancing failure             |
| **Exit Option**     | All users can redeem at last rebalanced price                       |
| **No Lock-In Risk** | Guarantees user funds are never stuck due to LP or protocol failure |
| **Failsafe Design** | Reinforces protocol integrity and user confidence                   |