Network Downtime Probability

Network downtime probability is the statistical likelihood that a blockchain will become temporarily unavailable or unable to process transactions. This can be caused by software bugs, network attacks, or infrastructure failures.

For a derivative platform, any downtime is a major risk, as it prevents traders from managing their positions, potentially leading to liquidation during periods of high volatility. Estimating this probability involves looking at the network history, the robustness of its infrastructure, and the frequency of past outages.

High availability is a key competitive advantage for any financial network. Traders must incorporate this risk into their position sizing and stop-loss strategies to avoid being caught in a locked-out state.