Recursive System Lifecycle in Financial Market Collapse: A Structural Instantiation of the Paton System

This record presents a Tier-7 domain instantiation of the canonical recursive lifecycle defined within the Paton System. The paper demonstrates that financial market behaviour follows a universal structural progression: • Admissibility — constraint alignment and system entry • Datum — price formation as shared reference • Recursive Continuation — iterative market dynamics • Constraint Drift — pre-closure instability phase • Boundary Closure — termination under constraint incompatibility The analysis shows that financial collapse is not anomalous, but structurally necessary once constraint drift exceeds admissible bounds. This work does not introduce new theoretical components. It applies existing Paton System constructs to a real-world domain, confirming cross-domain structural invariance. Cross-references: • Paton Admissibility Test (PAT) — https://doi.org/10.5281/zenodo.18364922 • Datum Interface / Datum Cascade — https://doi.org/10.5281/zenodo.18955464 • Constraint Drift: Pre-Closure Behaviour in Admissible Systems — https://doi.org/10.5281/zenodo.19109691 • Boundary Closure of Recursive Systems — https://doi.org/10.5281/zenodo.19109032 • Boundary–Relation–Persistence (BRP) — https://doi.org/10.5281/zenodo.19051514