Modular Architecture Inflexibility
Modular architecture inflexibility describes a situation where a protocol is designed in distinct components, but those components are so tightly coupled that upgrading one part breaks the others. While modularity is intended to make systems easier to upgrade, poor design can lead to dependencies that prevent independent updates.
This forces a full-system migration even for minor changes, increasing the risk of failure and downtime. In derivatives, this might mean that updating the pricing engine requires a complete migration of the collateral management system.
To avoid this, developers must ensure that interfaces between modules are strictly defined and that changes to one module do not negatively impact the internal state or functionality of others.