Markets never close — your guarantees
The protocol runs 24 hours a day on a composite price. What changes from hour to hour is how much confidence the protocol places in that price, not what you are allowed to do.
The stocks behind your collateral trade on a schedule. Your loan does not. Fyber operates continuously on a price it computes itself, and every operation you might need is available at every hour.
That price is a composite, recomputed every hour: the median of qualified on-chain pool averages, of signed perpetual and index feeds, and of twin-token markets where the same exposure trades under another ticker. No group of sources may weigh more than half the total.
What varies is the protocol's confidence in that composite. Confidence is a number between zero and one, computed on-chain from how many independent sources answered and how well they agree. Every rule that tightens is a function of it.
The three regimes
| Regime | When | What it means for you |
|---|---|---|
LIVE24 | At least two independent groups of sources agree, one of them not a reporter | Everything at its standard terms. No haircut, standard ratio to borrow, liquidations absorbed by the Stability Pool. |
DEGRADED | Sources have dropped out, disagree beyond tolerance, or are too correlated to count as independent | Everything still works. Borrowing and withdrawing take a haircut; a fall must be confirmed and persistent, and the delay before execution is longer. |
FROZEN | Too few independent sources remain: sequencer down, oracle paused, circuit breaker, or a missed heartbeat | Repay, deposit and close only. Nothing that needs a price runs. |
There is no "closed" state. The regime is a statement about the sources, never about the clock.
The five guarantees
1. Every operation is available around the clock
Borrowing, repaying, adding collateral, withdrawing, opening, closing, depositing into and withdrawing from a Stability Pool, redeeming and swapping at the PSM all work at every hour, including Saturday. There is no window during which the product is switched off, and no operation that waits for an opening bell.
2. Your liquidation threshold never moves
Guarantee
115% on tier 1, 120% on tier 2. The same number at 10:00 on a Tuesday and at 03:00 on a Sunday. Low confidence never raises it and never lowers it: raising it would liquidate you on an estimated price, and lowering it would weaken the protocol exactly when it sees least well.
Caution is bought with proof and with delay, never by moving the threshold under a borrower. See Liquidations.
3. What tightens is how much you can borrow, and it slides
In DEGRADED the protocol values your collateral with a haircut when you want to increase risk:
How it is calculated
haircut = H_MAX × (1 − confidence), H_MAX = 30% on tier 1, applied
to borrowing and withdrawing only.
At full confidence the haircut is zero, and the ceiling is the standard 80% on tier 1. As sources drop out the haircut grows and the ceiling slides down with it. The number moves continuously and returns on its own the moment the sources come back — no keeper, no vote, no announcement.
Guarantee
The haircut never touches an existing position's liquidation threshold, never forces you to act, and never applies to repaying, depositing collateral or closing. It only limits how much new risk you may take while the price is uncertain.
4. A fall must be proved before it can cost you anything
In DEGRADED, once a fall is proved, the liquidation price is clamped to a recognition band of 4% on tier 1 and 6% on tier 2. That band is a constant. It does not open wider the longer a fall lasts, so 4% is the deepest fall the protocol will ever recognise on degraded sources, whatever happens and for however long.
A fall counts only if one of two things is true:
- two independent qualified sources of the same branch agree, within 3% of each other;
- the fall has persisted for 3 hours on a single qualified source.
Guarantee
The asymmetry is deliberate and permanent. A rise in the on-chain price is never used to liquidate you and never lets anyone borrow more. A fall is never used to hand a redeemer more of your collateral. Pushing the on-chain price around can annoy you; it cannot be turned into a profit at your expense.
5. Repaying and depositing collateral are never blocked
Guarantee
repay, addCollateral and close work in every regime, at every hour, under every price
condition, and cannot be blocked by any key. They do not read the price oracle, so they cannot
fail because a price is missing or disputed.
Rules P2, R-4.4.1
This is the guarantee everything else rests on. Whatever the market is doing, whatever the feed is doing, you can always reduce your risk.
Who buys your collateral, and when
| Regime | Buyer | Discount |
|---|---|---|
LIVE24 | The Stability Pool | The standard bonus, 5% on tier 1 |
DEGRADED | The Stability Pool, after the fall is confirmed and a longer delay | The standard bonus |
FROZEN | Nobody | — |
The Stability Pool is the only taker there is. In FROZEN no liquidation runs at all, and a position that fell below its threshold while the branch had no price is liquidatable at the price that comes back, not before.
What is not affected
| Rule | Where |
|---|---|
| Redemption works at every hour, at a higher fee when confidence is low | Redemption |
| The PSM works around the clock and its exit is never pausable | PSM |
| Stability Pool withdrawal is never pausable | Withdraw |
| Ratio to borrow 125% on tier 1 at full confidence | Borrow |
| A corporate action pauses the oracle and suspends liquidation | Corporate actions |
Risk
None of this means you cannot be liquidated at an odd hour. If the composite falls far enough, the
fall is confirmed, and your ratio goes below 115% on that price, the Stability
Pool can take your collateral — on a Saturday as readily as on a Tuesday. What you are promised in
DEGRADED is a confirmation delay during which the fall is visible on-chain before that becomes
possible, and the ability to repay or deposit at any moment in that window.
See also Nights and weekends for what an ordinary hour actually looks like.
Last reviewed: 2026-09-07 · Spec v0.4
Repay in USDG
Close your debt with the dollars you actually hold, in one transaction, without buying fyUSD on a market — and without the PSM cap getting in the way.
Nights and weekends
What the protocol actually does at 3 a.m. on a Sunday — the same thing it does at 10 a.m. on a Tuesday, from the same sources, with a different number of them answering.