Circuit Breaker Warning State Testing

⚠️ This category requires the circuit breaker WARNING state to be active (90% ≤ CR < 95%). The Akash Core team will announce a 24-hour testing window when the circuit breaker is intentionally triggered. Complete these tests when the BME status shows mint_status_warning.

Circuit Breaker Warning Overview: When the Collateralization Ratio (CR) drops below the warning threshold (95%) but remains above halt (90%), BME enters warning state:

• Warning (90% ≤ CR < 95%): System operational but approaching risk
• mints_allowed: true — AKT→ACT conversions still work
• refunds_allowed: true — ACT→AKT conversions always allowed
• Epoch timing may slow down (backoff behavior)

Key Principle: Warning state is a soft alert — all operations still work, but the system is signaling elevated risk.

Test 7.1: Verify Circuit Breaker Warning State Active

Objective: Confirm BME is in circuit breaker WARNING state with appropriate status indicators

User Actions:

1. Query BME status:

   akash query bme status

2. Note the key fields:

   • status — should show mint_status_warning
   • collateral_ratio — should be between 0.90 and 0.95
   • mints_allowed — should be true (still allowed in warning)
   • refunds_allowed — should be true

3. Query vault state for context:

   akash query bme vault-state

Expected Results:

• status: mint_status_warning
• collateral_ratio ≥ 0.90 AND < 0.95
• mints_allowed: true
• refunds_allowed: true

Proof to Submit:

• BME status output showing mint_status_warning
• Collateral ratio value (must be between 0.90 and 0.95)
• mints_allowed: true and refunds_allowed: true

Test 7.2: Verify Mints Work During Warning

Objective: Confirm AKT→ACT conversions still WORK during warning state

User Actions:

1. Record pre-mint balances:

   akash query bank balances <your-address>

2. Mint ACT:

   akash tx bme mint-act 10000000uakt --from <wallet> -y

3. Wait for epoch processing (~90 seconds or longer if backoff active):

   sleep 120

4. Check post-mint balances:

   akash query bank balances <your-address>

Expected Results:

• Transaction SUCCEEDS
• AKT balance decreased
• ACT balance increased
• Mints still work during warning (unlike halt)

Proof to Submit:

• BME status showing mint_status_warning and mints_allowed: true
• Successful mint-act transaction hash
• Balance changes showing AKT decreased, ACT increased

Test 7.3: Verify Burns Work During Warning

Objective: Confirm ACT→AKT conversions work during warning state

User Actions:

1. Verify you have ACT to burn:

   akash query bank balances <your-address>

2. Record pre-burn balances

3. Burn ACT:

   akash tx bme burn-act 1000000uact --from <wallet> -y

4. Wait for epoch processing (~90-120 seconds):

   sleep 120

5. Check post-burn balances:

   akash query bank balances <your-address>

Expected Results:

• Transaction SUCCEEDS
• ACT balance decreased
• AKT balance increased

Proof to Submit:

• BME status showing refunds_allowed: true
• Successful burn-act transaction hash
• Balance changes showing ACT decreased, AKT increased

Test 7.4: Verify Deployment Creation Works During Warning

Objective: Confirm new deployments can still be created during warning state

User Actions:

1. Ensure you have ACT balance

2. Record pre-deployment balances:

   akash query bank balances <your-address>

3. Create deployment:

   akash tx deployment create deploy.yml --deposit 5000000uact --from <wallet> -y

4. Verify deployment created:

   akash query deployment list --owner <your-address>

Expected Results:

• Deployment creation SUCCEEDS
• ACT balance decreased by deposit amount
• New deployments allowed during warning (unlike halt)

Proof to Submit:

• Successful deployment creation transaction output
• Deployment list showing new deployment

Summary

Important Notes:

• All tests require mint_status_warning state (90% ≤ CR < 95%)
• Warning state may occur during price recovery from halt
• Epoch timing may be slower than healthy state (backoff behavior)
• Compare results with Category 6 (Halt state) to validate threshold behavior:
  • Halt (CR < 90%): Mints BLOCKED
  • Warning (90% ≤ CR < 95%): Mints ALLOWED

Timing During CB Window: The 24-hour CB window will cycle through states. Warning state typically occurs:

1. As price drops from healthy → warning (before hitting halt)
2. As price recovers from halt → warning (before returning to healthy)

Coordinate with the test plan timeline to capture warning state tests.