Definition
A defensive market state where investors shift toward cash, quality bonds, and lower-volatility assets.
A "risk-off" state (which we label as the Tight state on DollarLiquidity.com) is triggered by deteriorating liquidity conditions, geopolitical shocks, or credit stress. Capital moves to safety: USD cash, short-term Treasuries, and gold. Crypto and high-beta equities typically suffer the most due to leverage and thinner liquidity. On the site, the Tight state is declared when the absolute DLI Score rises above 67, signaling a draining net-liquidity flow or acute funding stress.