# Welcome Covenant is a permissionless, fully on‑chain protocol for tranching risk on tokenized vaults. Any oracle-priced asset can be split into two fungible ERC‑20 claims: a senior debt tranche (Yield Coin) and a junior equity tranche (Leverage Coin). Both are fully collateralized against the underlying and redeemable on demand, with prices and the funding rate set continuously by an on‑chain market against the asset's net asset value. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.covenant.finance/readme.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.