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Liquid Latent State Dynamics for Interpretable Turbofan Degradation Modeling

Multivariate time-series models for prognostics are often evaluated by point prediction accuracy, yet their internal states rarely expose a coherent degradation process. We study liquid neural networks as latent dynamics models for aircraft engine health monitoring on the C-MAPSS benchmark. The proposed model encodes a history window into a latent state, evolves that state with a liquid transition model, and decodes future sensor observations. To separate health evolution from operating-condition variation, the latent state is factorized into degradation and condition components. Remaining useful life, monotonic risk, and latent-consistency losses supervise the degradation component, while condition prediction and decorrelation losses discourage operating-condition leakage. Across FD001--FD004, the full disentangled model improves overall sensor forecasting RMSE from 0.2438 for a GRU baseline to 0.2266, with the largest gains on the multi-condition subsets FD002 and FD004. The learned degradation state also forms a clearer temporal degradation axis, reaching an average state-speed Spearman correlation of 0.5960. Direct remaining-useful-life regression remains stronger for the GRU baseline, indicating that the proposed representation is currently more effective as an interpretable world model for degradation dynamics than as a calibrated lifetime regressor. These results suggest that liquid latent dynamics can bridge predictive maintenance forecasting and inspectable health-state modeling.

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