> For the complete documentation index, see [llms.txt](https://docs.covenant.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.covenant.finance/market-types/50-50-concentrated.md).
# 50/50 Concentrated
*A Covenant Market type with a wider safety buffer for moderately volatile collateral.*
The **50/50 Concentrated** market is a Covenant Market for collateral that warrants a wider junior cushion: moderately volatile assets like tokenized equity indices (SPXA), LST-vs-USD pairs (stETH/USD, stMON/USD), as well as newer tokenized credit funds, mezzanine and BBB credit tranches. Deposits are split into a Yield Coin (senior, \~4% target yield) and a Leverage Coin (junior, \~2x leveraged exposure to the collateral's NAV returns). The narrow price band concentrates liquidity around par; the 50% senior / 50% junior split absorbs twice the loss buffer of the 80/20 configuration.
## Market characteristics
* Low Yield Coin price volatility
* \~2x Leverage Coin neutral structural leverage
* Minimum buffer: 20%
* High LTV and Leverage volatility
* Narrow yield and price bounds
## Parameters
### Core
| Parameter | Value |
| --------------- | ------------------- |
| Neutral LTV | 50% |
| Duration | 3 month perpetual |
| Min / max price | 0.96 / 1.01 |
| Swap fee | 30 bps |
| Protocol fee | 5% of funding yield |
### Rates
| Parameter | Value |
| ------------ | ----- |
| Max rate | 20.5% |
| Neutral rate | 4% |
| Min rate | -1% |
### Gates
| Parameter | Value |
| ------------ | --------- |
| High LTV | 80% |
| Max LTV | 96% |
| Workout rate | -1% daily |
## Curves
50/50 Concentrated: parameters, funding rate curve, and discount price curve.
*At low LTV, excess senior supply discounts the Yield Coin and lifts the rate. The curve crosses the Neutral rate at the Neutral LTV (50%) and dips slightly negative beyond. Above the Max LTV gate (96%), workout pricing takes effect (not shown).*
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