Definition
A defensive market state where investors shift toward cash, quality bonds, and lower-volatility assets.
Risk-off states are 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 DollarLiquidity.com, Risk-Off is declared when the DLI Score reaches the 80th percentile of its rolling 5-year distribution — signaling historically tight liquidity conditions.