Jane Street AI Factor Liquidation Stress Lab Catastrophic Factor De-leveraging

High-frequency market maker factor unwind and liquidity cascade simulation modeled on the July $15B drawdown.
Simulated Net P&L Hit
-$15.18B
Max Drawdown: -33.7%
Order Book Slippage Loss
-$4.85B
31.9% of Total Losses
Margin Cascade Steps
4 Steps
Peak Margin Mult: 2.85x
Residual Net Exposure
$18.2B
Deleveraged: -59.5%
Liquidation Sequence Replay

T+0: Primary AI Factor Liquidity Shock

Immediate -22.5% gap down in core AI basket positions. High crowding factor accelerates initial order book depth evaporation.

Cumulative P&L Drawdown Path ($B) T+0 to T+5
Factor Beta & Cross-Correlation Drift Hedge Breakdown
Factor Risk Attribution & Stress Breakdown
Strategy Leg / Factor Initial Gross ($B) Net Exposure ($B) Shock P&L ($B) Slippage Drag ($B) Total Loss ($B) Status
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