Ordinal Circuit Breakers for Financial AI: Nested RECD and Excess³ as Relational Fuses against Coordinated Liquidity Extinction

This is the authors' abstract. We don't add key points for this paper.

Modern market microstructure concentrates execution in automated strategies that share short analysis windows and risk summaries built largely from pairwise covariance or VaR-style projections. Under that design, a coordinated relational inversion—higher-order ordinal structure that looks like "noise" inside short windows—can produce simultaneous model breakage and simultaneous liquidity withdrawal. The resulting event is a candidate for liquidity extinction: a topological collapse of capital matching rather than an ordinary price correction. This preprint translates Physics-Informed Ordinal AI (PIO-AI) and the Systemic Tau stack into a financial-control design problem. Nested Discrete Extramental Clock (RECD) structure, beyond-pairwise ordinal residuals (Res_pair / excess³), absolute concordance change DE, and the cancellation index κ are treated as candidates for ordinal circuit breakers—relational fuses that can slow or pause trading while the system is still in a safer relational regime. A three-phase path (millisecond-scale liquidity withdrawal → common-driver contagion over hours → automation-trust winter over months) is presented strictly as an illustrative scenario, not as a forecast or calibrated backtest. The contribution is architectural and cautionary. Archived definitions supply the ordinal objects; the scenario supplies motivation; the breaker design supplies a research agenda (monitoring planes, pause/slow policies, governance, preregistered thresholds). No new market simulation, no regulatory endorsement, and no claim that Holter or environmental ordinal studies predict markets are offered. This record contains the English article (PDF, DOCX, Markdown), a Spanish summary, and CITATION.cff. Related: PIO-AI DOI 10.5281/zenodo.23633230. Text under Creative Commons Attribution 4.0 International. No funding declared. Version 1.0.0 is the cleaned final manuscript with continuous academic prose and Figure 1 (ordinal circuit-breaker ladder: notify → slow → pause). Prior v0.1.0 remains available under the same concept DOI.