What if Stable leverage regime keeps drawdowns orderly and shallow?
Moderate system-wide leverage and ample dealer balance-sheet capacity keep corrections orderly and self-limiting rather than cascading. The stable plumbing supports resilient risk appetite.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-on shock. Moderate system-wide leverage and ample dealer balance-sheet capacity keep corrections orderly and self-limiting rather than cascading. The stable plumbing supports resilient risk appetite. The trigger decomposes into signed root‑shocks — Volatility (VIX) ▼ · Credit spreads ▼ · Financial conditions ▼ · Risk appetite ▲ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▲ +1.0% hist -5.47–+12.23% · other way +12.92% (n=12) |
| 2 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▲ +0.8% hist -3.03–+7.15% · other way -4.46% (n=10) |
| 3 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▼ -0.7% hist -2.49–+0.54% · other way +6.23% (n=12) |
| 4 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▲ +0.7% hist -0.84–+2.82% · other way -4.27% (n=10) |
| 5 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▲ +0.6% model prior · unmeasured |
| 6 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▲ +0.6% hist -2.58–+6.98% · other way +0.35% (n=11) |
| 7 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▲ +0.5% hist +0.01–+0.68% · other way +0.4% (n=12) |
| 8 | High-yield credit HYG 📈 chart | Rate | ▲ +0.4% hist -0.15–+0.25% · other way +0.2% (n=12) |
| 9 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▲ +0.3% hist -0.03–+0.54% · other way -1.91% (n=12) |
| 10 | Financials XLF 📈 chart | Equity | ▲ +0.3% hist -0.04–+0.21% · other way +1.29% (n=12) |
| 11 | Tech sector XLK 📈 chart | Equity | ▲ +0.3% hist -0.11–+0.64% · other way +0.15% (n=12) |
| 12 | JPMorgan JPM 📈 chart | Equity | ▲ +0.2% hist -0.13–+0.63% · other way +2.67% (n=12) |
| 13 | Coinbase COINon Hyperliquid 📈 chart | Equity | ▲ +0.3% hist -4.93–+10.1% · other way +10.14% (n=10) |
| 14 | Semiconductors SMHon Hyperliquid 📈 chart | Equity | ▲ +0.2% hist -0.5–+2.16% · other way +0.35% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| TSM TSM | LONG | +2.3% · 5d -1.2% ↺ fades | 68% | 40 | 0.27 | ✓ matches cascade |
| SMH SMH | LONG | +1.8% · 5d -0.2% ↺ fades | 65% | 40 | 0.26 | ✓ matches cascade |
| 10y yield DGS10 | LONG | +6bp · 5d +3bp | 65% | 40 | 0.23 | · |
| SPX SPX | LONG | +0.3% · 5d +0.7% | 62% | 40 | 0.21 | ✓ matches cascade |
| AVGO AVGO | LONG | +1.5% · 5d -0.3% ↺ fades | 62% | 40 | 0.21 | ✓ matches cascade |
| AMD AMD | SHORT | -2.1% · 5d -1.6% | 62% | 40 | 0.19 | ⚠ differs |
| NDX NDX | LONG | +0.4% · 5d -0.7% ↺ fades | 62% | 40 | 0.18 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.3% · 5d -0.1% | 62% | 40 | 0.18 | ⚠ differs |
| Volatility VIX | SHORT | -2.0% · 5d -6.8% | 60% | 40 | 0.15 | ✓ matches cascade |
| MRVL MRVL | LONG | +1.9% · 5d -1.5% ↺ fades | 60% | 40 | 0.14 | ✓ matches cascade |
| JPM JPM | LONG | +0.5% · 5d -0.6% ↺ fades | 57% | 40 | 0.12 | ✓ matches cascade |
| Bitcoin BTC | LONG | +6.3% · 5d -1.9% ↺ fades | 56% | 36 | 0.10 | ✓ matches cascade |
| XLF XLF | SHORT | -0.2% · 5d -0.5% | 55% | 40 | 0.08 | ⚠ differs |
| Gold XAU | SHORT | -0.6% · 5d -0.8% | 55% | 40 | 0.08 | · |