The cliff-drop in US equities at the opening of trading on August 17 shocked many investors. Since then, the ongoing questioning of the true liquidity within major markets and the amount of leverage that is now built into investor viewpoints has continued. In October a seminal paper on volatility and shadow convexity was released by Artemis Capital, which I highly recommend if you have the time and headspace for a 40 page philosophical/investment thesis. Combining some of themes of this paper with my own thoughts, I want to focus on three areas which have the potential to amplify sell-offs and create further cliff-drop moments.