Banks don't fail because they run out of money; they fail because their software is too slow to keep up with a 'kinetic' digital panic.
April 15, 2026
Original Paper
The Periodic Topology of Risk (TPTR): Escaping the Regulatory Matrix via Chronopotency
SSRN · 6280538
The Takeaway
We regulate banks by making them hold a certain amount of static capital, assuming that safety is a number on a balance sheet. But this paper uses concepts from kinematic physics to show that digital bank runs move at a 'kinetic' velocity that simply outruns a human institution's ability to make decisions. It's not about the money; it's about 'chronopotency'—the speed of power. In the age of instant mobile transfers, a bank can be perfectly 'safe' by every legal standard and still be dead in minutes because the regulatory framework is stuck in a slower dimension of time. To save the banking system, we don't need more capital; we need to fix the 'periodic topology' of how risk moves in a digital matrix.
From the abstract
The banking collapses of 2023 exposed a fatal divergence between regulatory compliance and kinetic reality. This paper argues that the global financial architecture has succumbed to "The Matrix Dilemma": a state where institutions optimize for a simulated environment of static capital ratios (Risk-Weighted Assets), while decoupling from the high-velocity physics of modern liquidity runs. We introduce the Periodic Topology of Risk (TPTR) to map this disconnect, identifying two primary failure mec