Emergency Procedures

The Emergency Manager role provides critical safeguards to protect user funds during security incidents or market crises. This role is intended as a last resort mechanism.

Emergency Powers

Pause and Unpause Operations

The Emergency Manager can halt and resume all protocol operations:

• Deposits (minting new units)
• Withdrawals (redeeming units for collateral)

1. Emergency Manager calls pause function
2. All deposits and withdrawals are blocked
3. Investigation and resolution occurs
4. Emergency Manager unpauses when safe

Pausing is a last resort measure used only when continuing normal operations would put user funds at significant risk.

Emergency Rebalancing Authorization

The Emergency Manager can authorize rebalancing operations even when the unit redemption price falls below $1.00.

Normal Condition: Under standard operations, if the redemption price drops below $1.00, rebalancing that would further decrease collateral value is blocked to protect unit holders.

Emergency Override: In critical situations where rebalancing is necessary despite the redemption price being below peg, the Emergency Manager can grant permission to the Rebalancing Manager to proceed.

Redemption price: $0.98
Collateral asset failing, needs immediate exit
Emergency Manager authorizes rebalancing
Funds moved despite price impact
Prevents total loss, preserves most value