Each bank has external assets A, an equity buffer set by the capital-ratio slider, and interbank loans to/from its network neighbours. Equity is E = A + receivables − liabilities; a bank defaults the instant E < 0.
Clearing (Eisenberg-Noe):
p_i = min(L_i, A_i + Σ_j π_ji · p_j)
recovery_i = max(0, A_i) / (L_i + ibLiab_i)
loss passed on = (1 − recovery_i) · ibLiab_i
Click a bank to select it, apply an asset shock, then click Propagate repeatedly — each click runs one clearing round, splitting a defaulted bank's shortfall across its interbank creditors in proportion to their exposure. The cascade stops on its own once a round produces no new defaults.