Pith. sign in

REVIEW 1 cited by

Not yet reviewed by Pith; the record is open.

This paper has not been read by Pith yet. Machine review is queued; the pith claim, tier, and objections will appear here once it completes.

SPECIMEN: schema-true, not a live event

T0 review · schema-true

One-sentence machine reading of the paper's core claim.

pith:XXXXXXXX · record.json · timestamp

arxiv 2503.17836 v1 pith:FSZPVLY3 submitted 2025-03-22 q-fin.MF

Clearing Sections of Lattice Liability Networks

classification q-fin.MF
keywords clearinglatticenetworkscomplexfinancialframeworknetworksections
verification ladder T0 review T1 audit T2 compute T3 formal T4 reserved
0 comments
read the original abstract

Modern financial networks involve complex obligations that transcend simple monetary debts: multiple currencies, prioritized claims, supply chain dependencies, and more. We present a mathematical framework that unifies and extends these scenarios by recasting the classical Eisenberg-Noe model of financial clearing in terms of lattice liability networks. Each node in the network carries a complete lattice of possible states, while edges encode nominal liabilities. Our framework generalizes the scalar-valued clearing vectors of the classical model to lattice-valued clearing sections, preserving the elegant fixed-point structure while dramatically expanding its descriptive power. Our main theorem establishes that such networks possess clearing sections that themselves form a complete lattice under the product order. This structure theorem enables tractable analysis of equilibria in diverse domains, including multi-currency financial systems, decentralized finance with automated market makers, supply chains with resource transformation, and permission networks with complex authorization structures. We further extend our framework to chain-complete lattices for term structure models and multivalued mappings for complex negotiation systems. Our results demonstrate how lattice theory provides a natural language for understanding complex network dynamics across multiple domains, creating a unified mathematical foundation for analyzing systemic risk, resource allocation, and network stability.

discussion (0)

Sign in with ORCID, Apple, or X to comment. Anyone can read and Pith papers without signing in.

Forward citations

Cited by 1 Pith paper

Reviewed papers in the Pith corpus that reference this work. Sorted by Pith novelty score.

  1. Clearing in Liability Networks via Sheaves on Directed Hypergraphs

    q-fin.MF 2026-05 unverdicted novelty 7.0

    Liability clearing in networks is modeled as global sections of a liability sheaf on directed hypergraphs, identified as a finite-limit construction with existence and uniqueness from lattice and metric theorems on pa...