The Four Modes
Normal
All operations allowed. This is the default state. You can open and close positions, adjust
margin, deposit and withdraw from the vault — everything works normally.
Degraded
No new positions. Opening new positions and increasing existing ones are blocked. You can still
close positions, reduce them, adjust margin, settle, and manage vault deposits. Typically triggered
by oracle quality issues.
Reduce-Only
Same restrictions as Degraded. Functionally identical — no new exposure can be added. Set
manually by the admin as a stronger signal that the protocol is in a cautious state.
Paused
Everything is suspended. No operations of any kind. This is the emergency brake, used only
when the protocol needs to be completely halted (e.g., critical oracle failure or security incident).
What You Can Do in Each Mode
| Operation | Normal | Degraded | Reduce-Only | Paused |
|---|---|---|---|---|
| Open position | Yes | No | No | No |
| Increase position | Yes | No | No | No |
| Close position | Yes | Yes | Yes | No |
| Reduce position | Yes | Yes | Yes | No |
| Add margin | Yes | Yes | Yes | No |
| Remove margin | Yes | Yes | Yes | No |
| Vault deposit | Yes | Yes | Yes | No |
| Vault withdraw | Yes | Yes | Yes | No |
Adding margin is always permitted in non-Paused modes, even in Degraded and Reduce-Only. This ensures
you can rescue a position from liquidation regardless of the protocol mode.
How Mode Changes Affect You
- Normal → Degraded/Reduce-Only
- Normal → Paused
- Return to Normal
Impact: You cannot open new positions or increase existing ones. All other operations continue
normally.What to do: Monitor the protocol status. If you have open positions approaching liquidation,
you can still add margin. If you want to reduce risk, you can close or reduce positions.
Why Modes Exist
Modes protect you and the protocol from operating with bad data or during emergencies:- Oracle issues: If forward prices become stale or invalid, the protocol blocks new positions to prevent trades at incorrect prices
- Market emergencies: During extreme volatility, the admin can restrict operations to protect the pool and existing positions
- Security incidents: The Paused mode provides a complete halt for investigation and remediation