> 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/markets/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    | None (0% currently) |

### 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

<figure><img src="/files/RlEcjZQhhINLnVx4Cd1Q" alt="50/50 Concentrated market specification"><figcaption><p>50/50 Concentrated: parameters, funding rate curve, and discount price curve.</p></figcaption></figure>

*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).*