How it works
Bands and ranges
How a loan's collateral is spread over price bands, and what limits how much you can borrow.
The band grid
Every market has 128 bands on a fixed grid of prices. Each band's top edge is a constant step below the one above it: 1% on the SOL and JitoSOL markets, 2% on NVDAx. The step comes from the market's amplification A, which is 100 for the first two and 50 for NVDAx; each band edge is (A − 1) / A of the one above.
All loans in a market share the grid. A band can hold collateral from many loans at once, and each loan owns a share of every band in its range. When a band trades, all of its owners convert together, in proportion.
Where your range starts
When you open a loan, the program reads the oracle, takes off the market's loan discount, and starts your range at the first band edge at or below that price.
| Market | Loan discount | Your range starts |
|---|---|---|
| SOL | 15% | At least 15% under the price |
| JitoSOL | 15% | At least 15% under the price |
| NVDAx | 25% | At least 25% under the price |
Nothing converts until the price falls that far. An ordinary dip leaves your collateral alone.
How many bands
You choose how many bands your collateral is split over: 4 to 50 on SOL and JitoSOL, 10 to 50 on NVDAx. The split is even, so 100 SOL over 25 bands puts 4 SOL in each.
- Fewer bands make a short range. It converts quickly once the price reaches it, and it ends closer to the price.
- More bands make a long range. It converts gently over a longer fall, and it reaches further down.
- Range
- −15.0% to −24.7%
- Most you can borrow on $10,000
- $5,500 (55.0%)
- Limited by
- The 55% loan-to-value cap
How much you can borrow
Two limits apply, and the smaller one wins:
The first is the market's loan-to-value cap: 55% for SOL, 50% for JitoSOL, 25% for NVDAx. The second makes sure that even if the price walks all the way down through your range, the dollars your bands collect still cover the debt with room to spare.
For short ranges the cap decides. On the SOL market the range starts to decide at about 28 bands, and from there every extra band lowers the limit. The pool must also hold enough idle cash for the loan.
Bands that still hold dollars
New collateral can only enter bands that hold no dollars. Right after a fast rise, bands below the price may still hold other loans' dollars, because arbitrage has not yet bought their collateral back. Until it does, a new loan whose range would cover those bands is refused, and the app says so. Waiting a minute or two usually clears it.
When the price leaves the grid
The grid is centred when a market launches. If the price falls so far that no range fits under it, new loans stop until the grid is moved. The admin can only recenter a market that is completely empty, with no debt and nothing in any band, so a live loan's bands never move.