The failure mode
In recursive systems, each iteration uses the last iteration’s output as an input. If the update rule allows large steps, small disturbances can accumulate until the loop diverges or oscillates.
- Unbounded updates can produce overshoot and instability.
- Monitoring often detects after the state is already unsafe.
- Bounds-by-construction prevent the unsafe update from being applied.
What to look for in the demo
Use EMA (α=0.50) on a step input to see overshoot, then switch to GSRF to see how boundedness suppresses excursions outside the target band.
Go deeper
If you want the formal framing, start with the paper abstract and then open the PDF.
Run the demo with your industry preloaded
Signals are synthetic and domain-shaped; filter math is unchanged. This preset makes feedback amplification intuitive for finance/trading loops.