50/50 Wide

A Covenant Market type with conservative leverage and a wide price band for volatile collateral.

The 50/50 Wide market is a Covenant Market for volatile collateral where lower leverage and a wider safety buffer are preferred: major crypto assets (BTC, ETH, MON, HYPE), long-tail tokens, and newly launched assets without an extended price history. 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 wide price band absorbs price volatility in the underlying; the 50% senior / 50% junior split absorbs twice the loss buffer of the 80/20 configuration.

Market characteristics

• High Yield Coin price volatility and swap slippage

• ~2x Leverage Coin neutral structural leverage

• Minimum buffer: 20%

• Broad yield and price bounds

Parameters

Core

Parameter	Value
Neutral LTV	50%
Duration	3 month perpetual
Min / max price	0.80 / 1.07
Swap fee	30 bps
Protocol fee	5% of funding yield

Rates

Parameter	Value
Max rate	159%
Neutral rate	4%
Min rate	-22%

Gates

Parameter	Value
High LTV	80%
Max LTV	90%
Workout rate	-1% daily

Curves

50/50 Wide: parameters, funding rate curve, and discount price curve.

The wide band lets the Yield Coin discount deeply at low LTV (to ~0.80 of NAV, implying extreme funding rates off-chart) and trade above par at high LTV. Above the Max LTV gate (90%), workout pricing takes effect (not shown).