Educational simulationSynthetic data
Digital twin scenario explorer
A digital twin is a model that mirrors the structure of a real system so you can stress it safely. This one is a deliberately small financial network: five institutions, the exposures between them, and the shocks that travel along those links.
System state
Educational simulation
Bank
Resilient
Investment fund
Resilient
Digital-asset exchange
Resilient
Stablecoin issuer
Resilient
Households and firms
Resilient
- Resilient
- Strained
- Failing
Institutions under strain or failing 0 / 5
| Institution | Capital buffer remaining | Liquidity coverage | Status |
|---|---|---|---|
| Bank | – | – | – |
| Investment fund | – | – | – |
| Digital-asset exchange | – | – | – |
| Stablecoin issuer | – | – | – |
| Households and firms | – | – | – |
Assumptions · Limitations
Assumptions
- Balance sheets, exposures and thresholds are invented round numbers chosen to make mechanisms visible.
- Losses pass along exposures in a single round: if an institution’s capital falls below zero, its creditors lose 40% of what it owes them.
- Liquidity coverage is liquid assets divided by the funding withdrawn. Below 100%, the gap is met by selling risky assets at a 20% discount, and that discount is booked as a loss.
- Status thresholds: resilient above 8% capital and 100% liquidity coverage; failing at or below 0% capital; strained in between.
Limitations
- Real systems have many more participants, feedback loops over time, central-bank backstops and behaviour this model leaves out.
- The output shows how stress can travel. It is not a forecast and says nothing about any real institution.