Liquidity Risk is a composite 0–1 score measuring how tight or loose U.S. macro liquidity conditions are. Higher values = tighter conditions historically unfavorable to risk assets. Lower values = loose, accommodative regimes that tend to support equities and crypto.

Built from three FRED series ranked as percentiles over their full history, then weighted: Federal Funds Rate (FEDFUNDS) 50% — policy rate level; 10Y–3M Treasury Spread (T10Y3M) 25% — inverted, so a flat/negative curve raises risk; M2 Money Supply YoY growth (M2SL) 25% — inverted, so shrinking money supply raises risk and QE-driven expansion lowers it. Regimes: Very Tight ≥ 0.8 · Tight ≥ 0.6 · Loose ≥ 0.4 · Very Loose < 0.4.