Failure / Threat Matrix

Continuity-Governed Response Mapping

Purpose

The Failure / Threat Matrix defines how the Sagitta Protocol responds to adverse conditions across financial, technical, and governance domains.

Each failure class is mapped to a governing authority and a deterministic outcome. The matrix demonstrates that no failure mode results in depositor principal loss or uncontrolled system collapse.

This matrix describes what happens, not how it is implemented.

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Threat Classification Matrix

Failure / Threat Class	Description	Governing Authority	System Response	Depositor Outcome
Allocation Underperformance	Allocation batch returns less capital than deployed	Treasury + Reserve	Ordered loss absorption; reserve-relative settlement	Principal preserved; yield adjusted
Sustained Allocation Failure	Repeated underperformance across batches	Treasury + Reserve + AAA	Allocation contraction; strategy restriction; reserve prioritization	Principal preserved
Stablecoin Depeg	Stability Unit deviates materially from peg	Continuity Engine	Currency substitution; valuation normalization	Principal preserved in substituted unit
Reserve Asset Volatility	Reserve asset correlation or valuation shift	Reserve + Continuity Engine	Coverage recalibration; reserve reinforcement	Principal preserved
Vault Contract Failure	Vault accounting or contract fault	Continuity Engine + Reserve	State reconstruction; insured restoration	Principal restored
Escrow Execution Failure	Counterparty or venue failure during execution	Escrow + Continuity Engine	Capital recall; execution isolation; substitution	Principal preserved
Treasury Token Market Attack	Liquidity manipulation or hostile market activity	Treasury + Continuity Engine	Token isolation; lifecycle restriction	Allocation continues; principal preserved
Treasury Token Governance Capture	Token-based governance attack	Continuity Engine	Governance scope restriction; authority freeze	Principal preserved
DAO Governance Deadlock	Governance paralysis or quorum failure	Continuity Engine	Continuity authority enforcement	Principal preserved
Oracle Failure	Pricing or data feed disruption	Continuity Engine	Oracle substitution; conservative valuation	Principal preserved
Infrastructure Failure	Chain halt, RPC failure, or network outage	Continuity Engine	Execution halt; evacuation; reconstitution	Principal preserved
Multi-Component Failure	Concurrent subsystem failures	Continuity Engine	Evacuation; degradation; phased recovery	Principal preserved
Catastrophic System Event	Extreme external or systemic shock	Continuity Engine	Full evacuation; reserve enforcement; reconstitution	Principal preserved
Blockchain Failure	Chain halt, consensus failure, censorship, or irrecoverable network disruption	Continuity Engine	Execution halt; asset evacuation; chain substitution; state reconstitution	Principal preserved

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Interpretation Guidance

• Governing Authority indicates which system enforces response

• System Response reflects doctrine-level action, not execution detail

• Depositor Outcome remains invariant across all threat classes

This matrix demonstrates that every identified failure mode resolves to containment, substitution, or recovery, never depositor impairment.

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Design Implication

Sagitta does not optimize for uninterrupted yield.

It optimizes for:

• capital preservation

• deterministic response

• survivability under stress

Failure is treated as a managed state, not an exception.

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Closing Statement

This matrix operationalizes the Sagitta System Invariants.

It ensures that:

• risk is bounded

• authority is predefined

• outcomes are predictable

Sagitta does not ask what happens if things fail.

It defines what happens when they do.