> For the complete documentation index, see [llms.txt](https://surf-2.gitbook.io/surfliquid-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://surf-2.gitbook.io/surfliquid-docs/crisis-handling/safety-circuit-breakers.md).

# Safety Circuit Breakers

<figure><img src="/files/WHY3YoSJlOAfr6qaM1pY" alt=""><figcaption></figcaption></figure>

**Automation should never be allowed to operate without a hard stop.**

In traditional finance, circuit breakers pause markets when volatility or risk exceeds safe limits. Surf applies the same principle at the execution layer, inside every user vault.

Circuit breakers are deterministic rules that can halt, restrict, or unwind activity when predefined safety conditions are breached.

They exist to protect users from:

* Protocol failures
* Liquidity collapses
* Oracle anomalies
* Abnormal price movements
* Exploits or governance attacks
* Model or data errors
* Extreme utilisation spikes
* Unexpected correlation shocks

***

#### **How Circuit Breakers Work?**

Every action proposed by Surf is continuously evaluated against safety thresholds. If any of the following conditions are triggered, execution is blocked or modified:

**1. Venue Health Triggers**

Execution halts if:

* A protocol falls below a security or audit confidence tier
* Governance changes introduce new risk
* Admin keys or upgrade paths change unexpectedly
* Emergency pauses or exploits are reported

**2. Liquidity Exit Triggers**

Execution halts or exposure is reduced if:

* Available exit liquidity falls below safe unwind depth
* Slippage exceeds allowed bounds
* Pool utilisation approaches stress zones
* Borrow rates spike beyond stability thresholds

**3. Price and Oracle Anomaly Triggers**

Execution halts if:

* Oracle deviation exceeds tolerance bands
* Cross-venue price feeds diverge abnormally
* Volatility exceeds stress model limits

**4. Portfolio Risk Triggers**

Execution halts or reallocates if:

* Concentration limits are breached
* Correlation between positions increases tail risk
* Drawdown velocity exceeds guardrail thresholds
* Health factor or LTV approaches liquidation zones

**5. Automation Behavioural Anomaly Triggers**

Execution halts if:

* Proposed actions violate invariant rules
* Simulation error margins exceed confidence bands
* Vault behaviour deviates from historical stability envelopes

***

#### Emergency Actions

When a circuit breaker is triggered, Surf can deterministically perform one or more of the following actions, depending on severity:

* Block new rebalances
* Freeze exposure increases
* Gradually unwind positions
* Route to safest allowlisted venues
* Shift capital into safer neutral positions
* Pause all automation until conditions return within safe thresholds
* Enable user-initiated emergency withdrawal paths

All actions remain:

* Non-custodial
* Vault-scoped
* Rule-enforced
* Fully on-chain verifiable

***

#### Why This Matters?

Most DeFi automation systems fail in stress because they optimise first and ask questions later.

Surf is built on the opposite philosophy:

Risk defines the optimisation space.\
Not the other way around.

The Guardian Layer ensures that:

* Surf can never override safety.
* Optimisation can never bypass invariants.
* Automation can never outrun control.

**This is how automation should interact with real money.**

Not as an unconstrained execution system.\
**But as a proposal engine operating inside hard, auditable, and enforceable safety rails.**