> 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/protocol-mechanism.md).

# Protocol Mechanism

- [How tranching works](https://docs.covenant.finance/protocol-mechanism/how-does-covenant-work.md)
- [Priced markets vs NAV](https://docs.covenant.finance/protocol-mechanism/priced-markets-vs-nav.md)
- [The Latent Swap AMM](https://docs.covenant.finance/protocol-mechanism/latent-swap-amm.md)
- [Perpetual Debt](https://docs.covenant.finance/protocol-mechanism/perpetual-debt.md)
- [Worked example: aHYPER](https://docs.covenant.finance/protocol-mechanism/worked-example.md)
- [Risks and mitigations](https://docs.covenant.finance/protocol-mechanism/risks-and-mitigations.md)
- [What makes Covenant different?](https://docs.covenant.finance/protocol-mechanism/what-makes-covenant-different.md)