Protocol Documentation
  • Getting Started
    • Overview
    • Own Protocol 101
    • Protocol Philosophy
  • Protocol Flow
  • Contract Architecture
  • Protocol Calculations
  • FAQ's
  • Legal Notice
  • User
    • User Guide
    • User Protocol Functions
  • Interest Rate Curve
  • User Collateral & Liquidation
  • Yield bearing Reserve
  • Pool Halt & Exit
  • Stock Splits
  • Liquidity Provider
    • LP Guide
    • LP Protocol Functions
  • LP Collateral & Liquidation
  • Market-Making Yield
  • LP Short Strategy
  • Market Landscape
    • Competition
  • Future Potential
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On this page
  • Pool Halt & Exit: User Protection In Case Of Rebalancing Failures
  • When Does a Pool Halt Happen?
  • Who Can Trigger a Halt?
  • What Happens During a Pool Halt?
  • Why This Matters
  • Design Philosophy
  • TL;DR

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.

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.

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.

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.

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

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.

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

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Last updated 1 month ago