> 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-wide.md). # 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 | None (0% currently) | ### 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 market specification

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).*