THORChain runs a continuous solvency check on every vault, on every connected chain, at all times. Every node independently compares what the protocol believes it holds against what's actually sitting in the on-chain wallet. If the real balance falls more than 1% below the expected balance, that node flags it. If more than 66% of nodes flag the same discrepancy, trading for that chain halts automatically. The halt is triggered by code, with no manual intervention required. A security alert then fires to the THORSec monitoring channel so the human team can investigate. There's also a proactive layer. Before signing any outbound transaction, each node simulates its effect on vault balances first. If the simulation shows the transaction would render the vault insolvent, the node refuses to sign and triggers the same alert. This is why THORChain can automatically halt when its own solvency is at risk, but can't halt because an external party wants specific funds frozen. The automatic system responds to protocol state, not to outside requests.