25% move in BTC or ETH

What’s the impact of extreme market moves on Gauntlet Vaults?

For BTC and ETH markets allocated to Gauntlet vaults, borrow positions are overcollateralized with an 86% Liquidation Loan To Value (LLTV). If borrow positions become unhealthy during extreme volatility, they are typically liquidated by external participants known as liquidators. Read more about liquidators and liquidations here.

LLTV parameters preserve a ~10% collateral buffer to absorb slippage and market volatility. Our vault allocation engine continuously simulates liquidation outcomes across different price and liquidity environments and dynamically reduces exposure when drawdown conditions exceed predefined risk tolerance thresholds.