{"schema_version":1,"experiment_id":"eoa_inverse_innovation_exp04_retrieval_first_paired20_20260802","cell_id":"invariant_mode_decomposition_design__economics_finance","hypothesis_id":"H5","search_queries":["systemic optimal liquidation overlapping portfolios fire sales coordinated margin liquidation","broker liquidation engine optimize market impact across accounts correlated portfolios","patent margin liquidation system market impact portfolio positions","spectral eigenvalue fire sale contagion overlapping portfolios control liquidation","central planner optimal liquidation fire sales banks market impact","coordinated liquidation strategy multiple banks fire sale systemic risk optimization","singular value decomposition liquidation network systemic risk fire sale","macroprudential margin liquidation sequencing fire sale market impact"],"sources":[{"source_id":"S1","title":"Liquidations","publisher":"Bulk Labs","url":"https://docs.bulk.trade/bulk-exchange/Liquidations","source_class":"OFFICIAL_PRODUCT_DOCUMENTATION","claims_supported":["A deployed liquidation optimizer evaluates every position, preserves correlation hedges, and iteratively sells only enough to restore account margin health.","Candidates are ranked by margin reduction per estimated order-book price impact, substantially overlapping the proposed solvency-constrained substitution lever."]},{"source_id":"S2","title":"Liquidation","publisher":"LN Exchange","url":"https://docs.ln.exchange/perpetual/liquidation","source_class":"OFFICIAL_PRODUCT_DOCUMENTATION","claims_supported":["Stepwise partial liquidation is used expressly to limit market impact and liquidation losses.","Position size is reduced through successive maintenance-margin tiers before full liquidation."]},{"source_id":"S3","title":"Taking regulation seriously: fire sales under solvency and liquidity constraints","publisher":"Bank of England","url":"https://www.bankofengland.co.uk/working-paper/2019/taking-regulation-seriously-fire-sales-under-solvency-and-liquidity-constraints","source_class":"GOVERNMENT_OR_REGULATOR","claims_supported":["The research optimizes which assets banks sell to minimize liquidation losses while satisfying liquidity, leverage, capital, and solvency constraints.","It demonstrates that the optimal sale choice depends jointly on liquidity and regulatory weights."]},{"source_id":"S4","title":"Fire Sales, Indirect Contagion and Systemic Stress Testing","publisher":"University of Chicago Macro Financial Modeling Initiative","url":"https://mfm.uchicago.edu/wp-content/uploads/2017/06/Cont_Schaanning_Fire-Sales-Indirect-Contagion-and-Systemic-Stress-Testing-2017.pdf","source_class":"PRIMARY_RESEARCH","claims_supported":["Liquidity-weighted portfolio-overlap matrices are decomposed into eigenvalues and eigenvectors, with a few dominant modes supporting a low-dimensional factor representation.","Second-round effects can transmit liquidation losses between institutions without direct portfolio overlap.","Longer liquidation horizons attenuate fire-sale impact, while institution-level assessment requires systemwide holdings information commonly available only to regulators."]},{"source_id":"S5","title":"Optimization of Fire Sales and Borrowing in Systemic Risk","publisher":"arXiv","url":"https://arxiv.org/abs/1802.04232","source_class":"PRIMARY_RESEARCH","claims_supported":["The paper models a network of firms jointly linked through fire sales, price impact, shortfall borrowing, payments, and liquidations.","Clearing liquidations arise as equilibria of an aggregation game, establishing multi-firm liquidation optimization as prior research."]},{"source_id":"S6","title":"US11295388B2 — Liquidation cost calculation","publisher":"Google Patents / United States patent record","url":"https://patents.google.com/patent/US11295388B2/en","source_class":"OFFICIAL_ORGANIZATION_DATA","claims_supported":["The patent optimizes allocations of portfolio positions among outright and spread liquidation products using product-specific liquidation-cost functions.","The optimized liquidation cost feeds a performance-bond calculation, directly connecting portfolio liquidation optimization, market impact, and margin protection."]},{"source_id":"S7","title":"US11922506B2 — PCA-based portfolio margining","publisher":"Google Patents / United States patent record","url":"https://patents.google.com/patent/US11922506B2/en","source_class":"OFFICIAL_ORGANIZATION_DATA","claims_supported":["The patent reduces a large correlation structure to a few factors using eigenvalue decomposition or SVD and uses factor-specific shocks to determine portfolio margin.","It establishes low-dimensional modal decomposition inside a production-oriented margin workflow, although not for liquidation control."]},{"source_id":"S8","title":"Assessing the macroprudential impact of liquidity management tools for investment funds: a system-wide analysis","publisher":"European Central Bank","url":"https://www.ecb.europa.eu/press/financial-stability-publications/fsr/focus/2026/html/ecb.fsrbox202605_05~efb480d8e2.en.html","source_class":"GOVERNMENT_OR_REGULATOR","claims_supported":["A systemwide model finds that consistently applied redemption gates can redistribute and delay forced sales to reduce fire-sale spirals.","The ECB notes that individually calibrated controls may be systemically suboptimal and that authorities can coordinate stricter measures when systemic risk appears."]}],"proximity":"SUBSTANTIAL_COLLISION","closest_analogues":[{"name":"Bulk portfolio-risk and market-impact liquidation optimizer","similarity":"Very close at the execution boundary: it detects a margin breach, preserves correlated hedges, ranks substitute sales by solvency benefit per price impact, and iterates until the deficit is resolved.","remaining_difference":"It optimizes one account at a time and does not disclose a shared cross-account impact matrix, SVD-derived unstable modes, or residual-bounded reduced-order control.","source_ids":["S1"]},{"name":"Cont–Schaanning spectral fire-sale stress model","similarity":"Very close analytically: it models cross-institution price-mediated contagion, extracts dominant eigenmodes of liquidity-weighted overlaps, and supports low-dimensional systemic analysis.","remaining_difference":"It is a diagnostic and stress-testing framework rather than a latency-bounded engine that issues coordinated account-level liquidation instructions.","source_ids":["S4"]},{"name":"Solvency-constrained optimal asset-sale models","similarity":"These models jointly represent constrained institutions, endogenous price impact, liquidation choices, and contagion or clearing feedback.","remaining_difference":"They solve or simulate bank strategies and equilibria rather than using a live SVD/reduced-order controller to stagger sales across breached brokerage accounts.","source_ids":["S3","S5"]},{"name":"Liquidation-cost optimization plus factor-based margin patents","similarity":"The patent pair covers optimized portfolio liquidation allocations, market-impact-sensitive margin protection, SVD/eigenvalue factor reduction, and factor-specific margin scenarios.","remaining_difference":"Neither patent discloses cross-account modal damping during automated forced-sale execution with reconstruction-error governance.","source_ids":["S6","S7"]},{"name":"Stepwise and systemwide gating controls","similarity":"Existing practice delays or divides forced dispositions specifically to reduce market impact, and macroprudential analysis coordinates quantity limits to suppress systemwide fire-sale spirals.","remaining_difference":"The schedules are tier- or gate-based rather than selected dynamically from unstable singular modes of an account-asset liquidation map.","source_ids":["S2","S8"]}],"overlapping_components":["Margin-breach-triggered automated liquidation","Account-level solvency or performance-bond constraint","Partial rather than immediate full liquidation","Market-impact-aware sale selection","Correlation-hedge preservation and asset substitution","Iterative or stepwise liquidation scheduling","Multi-institution fire-sale and second-round price feedback modeling","Eigenvalue/SVD factor reduction in margin and systemic-risk workflows","Dominant spectral modes of liquidity-weighted portfolio overlap","Low-dimensional systemic stress models","Optimization of portfolio liquidation allocations and costs"],"remaining_contrastive_claim":"The remaining distinction is a live controller that repeatedly decomposes the shared cross-account account-to-asset impact map, selects or staggers solvency-feasible sales to damp its locally amplifying singular modes, and refuses the reduction when reconstruction residuals exceed a latency-bounded tolerance.","claim_falsifier":"The contrastive claim would be falsified by a pre-existing broker, exchange, clearinghouse, patent, or paper showing operational or replayed cross-account forced liquidation whose sale substitutions and timing are explicitly chosen from a spectral decomposition of shared price impact while enforcing every account's solvency and a stated reduced-model residual bound.","problem_support":"STRONG","recommendation":"RESEARCH","world_novelty_boundary":"This bounded eight-query review found every major component—and several near-complete combinations—as prior art, but did not find the exact cross-account spectral controller with explicit reconstruction-error governance; therefore novelty, if any, is confined to that narrow integration and cannot be asserted against proprietary broker engines, non-indexed patents, or unpublished clearinghouse procedures."}