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A failure of a system where one component's failure causes a chain-reaction failure of other components. A system bearing a load is susceptible to this type of failure, where an overloaded component shifts its load to other components upon its individual failure. In an electrical grid, a cascading failure occurs when a transformer's failure requires the other transformers to bear the electrical load, increasing the chance that one of those transformers will also fail due to overloading.
Where the components are fully interconnected and handle a fixed load, the per-component load trend is a rectangular hyperbola. This signifies that the per-component load increases at an increasing rate as components fail. As a result, the chance of any individual component's failing also increases at an increasing rate.
A graph illustrating a cascading failure in a World of Warcraft boss encounter. The trend is a rectangular hyperbola.