General Documentation
  • 📜INTRODUCTION
    • Protocol Overview
  • 🔷The Second Fold (V2)
    • Getting Started
    • What's New in V2
    • How Does a Leveraged Origami Vault Work?
      • Targeted Exposure
      • Rebalancing Down
      • Rebalancing Up
      • Vault Limits
    • Collection and Vault User Guides
      • What Are Collections?
        • lovBERA Collection
          • oriBGT
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • oriBGT Smart Leverage (Tulipa Cluster)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • OHM-HONEY (Origami LP Auto-Compounder)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • rUSD-HONEY (Origami LP Auto-Compounder)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • BYUSD-HONEY (Origami LP Auto-Compounder)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • wBERA-iBERA (Origami LP Auto-Compounder)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • wBERA-HONEY (Origami LP Auto-Compounder)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • wBERA-iBGT (Origami LP Auto-Compounder)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • iBERA-osBGT (Origami LP Auto-Compounder)
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
        • lovPendle Collection
          • PT-sUSDe-May 2025 7x
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
        • lovEthena Collection
          • PT-sUSDe-May 2025 7x
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
        • lovStables Collection
          • Sky Auto-Farm
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
        • lovUsual Collection
          • USD0++ 10x
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
        • lovETH Collection
          • wstETH 14x
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
          • wstETH 11x
            • Vault Synopsis
            • Token Flow
            • dApp Instructions
            • Fee Schedule
    • Risks
      • Liquidation Risk
      • Third-Party Risks
      • Interest Rate / Liquidity Risk
      • Vault Deprecation Risk
      • Smart Contract Risk
    • Rewards
    • What Fees We Collect
      • Performance Fee
      • Deposit and Exit Fee
    • Vault Fee Schedule
    • Deprecated Vaults
      • wOETH 5x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • wstETH 11x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • PT-sUSDe-Oct 2024 5x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • USDe 5x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • USDe 7x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • lovTendies Collection
        • What are directional vaults?
        • wETH-DAI-long 2x (Vitalik Bullterin)
          • Vault Synopsis
          • Token Flow
          • dApp Instructions
          • Fee Schedule
        • wETH-SDAI-short 2x (Vitalik Bearterin)
          • Vault Synopsis
          • Token Flow
          • dApp Instructions
          • Fee Schedule
        • AAVE-USDC-long 1.5x (Just Use Aave)
          • Vault Synopsis
          • Token Flow
          • dApp Instructions
          • Fee Schedule
        • wETH-cbBTC-long 3x
          • Vault Synopsis
          • Token Flow
          • dApp Instructions
          • Fee Schedule
      • PT-sUSDe-Mar 2025 7x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • PT-USD0++-Mar 2025 5x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • sUSDe 5x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • sUSDe 7x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • sDAI 11x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • rswETH 11x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • weETH 4x
        • Vault Synopsis
        • Token Flow
        • dApp Instructions
        • Fee Schedule
      • lovBTC Collection
        • PT-eBTC-Dec24 8x
          • Vault Synopsis
          • Token Flow
          • dApp Instructions
          • Fee Schedule
        • PT-cornLBTC-Dec24 8x
          • Vault Synopsis
          • Token Flow
          • dApp Instructions
          • Fee Schedule
  • 🔷The First Fold (v1)
    • What Is an Origami Vault (ov)?
    • Origami Vault Tokens (ovTokens)
    • Origami Tokens (oTokens)
    • Relationship Between Token, oTokens, and ovTokens
    • Rewards
    • ovToken Fees
  • 🐻Boyco
    • Origami USDC Boyco Overview
  • 🖲️Technical Reference
    • Audits
    • Contracts
    • Legacy Contracts
    • Admin Controls
  • 📘References
    • Disclaimer
    • Resources
    • Brand Kit
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  1. The Second Fold (V2)
  2. How Does a Leveraged Origami Vault Work?

Vault Limits

PreviousRebalancing UpNextCollection and Vault User Guides

Last updated 2 months ago

lov-Strategy Vault Deposit and Withdrawal Limits

Users should note that lov-Strategy vaults are subject to deposit and withdrawal limits based on the current Asset to Liability (A/L) ratio for that vault. The A/L ratio is simply the inverse of the Loan-to-Value ratio (LTV). These protective thresholds protect the integrity of the vaults and mitigate the risk of bad debt. In short, if a new lov-Strategy vault deposit or withdrawal would push the Asset / Liability ratio (or LTV) above the upper vault threshold or below the lower vault threshold, the transaction will revert.

The A/L ceiling (USER_AL_CEILING) prevents new deposits from reducing the leverage applied in the vault too much until a RebalanceDown can be executed. For the USDe 5x and the sUSDe 5x vaults, USER_AL_CEILING are both set to 70% LTV (Fig 2 and 4) whereas for the lov-wstETH vault, it is set to 86% LTV (Fig 7).

Similarly the A/L floor (USER_AL_FLOOR) prevents withdrawals that increase vault leverage too much until vault health ratio permits, or a RebalanceUp can be executed. For USDe 5x and sUSDe 5x vaults, the USER_AL_FLOOR is set to 83.5% and 84.5% LTV respectively (Fig 2 and 4) whereas for the lov-stETH vault, it is set to 89.9% LTV (Fig 7).

Once the vault automation adjusts the vault holdings back to the Targeted Effective Exposure range, or if user flows move the vault A/L ratio back to the nominal range, new deposits and withdrawals can then resume.

When USER_AL_CEILING is reached:

  • No new deposits until a RebalanceDown is triggered

  • RebalanceDown may allow new deposits to occur after the A/L ratio is reduced

  • Any new Deposits that would move the A/L ratio above the ceiling will revert

When USER_AL_FLOOR is reached:

  • No new withdrawals until a RebalanceUp is triggered

  • RebalanceUp may allow new withdrawals to occur after the A/L ratio is raised

  • Any new Withdrawals that would move the A/L ratio below the floor will revert

🔷
Fig 11. Chart displaying targeted effective exposure range for AAVE-USDC-long 1.5x vault which utilises the USDC pool from AAVE protocol
Fig 14. Chart displaying targeted effective exposure range for rswETH 11x vault which utilises the rswETH/WETH 94.5% LLTV Pool from Morpho
Fig 2. Chart displaying targeted effective exposure range for USDe 5x vault which utilises
Fig 3. Chart displaying targeted effective exposure range for USDe 7x vault which utilises
Fig 4. Chart displaying targeted effective exposure range for sUSDe 5x vault which utilises
Fig 5. Chart displaying targeted effective exposure range for sUSDe 7x vault which utilises
Fig 6. Chart displaying targeted effective exposure range for weETH 4x vault which utilises
Fig 7. Chart displaying targeted effective exposure range for wstETH 11x vault which utilises the WETH pool from
Fig 8. Chart displaying targeted effective exposure range for wstETH 14x vault which utilises the WETH pool from
Fig 9. Chart displaying targeted effective exposure range for wETH-DAI-long 2x vault which utilises the WETH pool from
Fig 10. Chart displaying targeted effective exposure range for wETH-sDAI-short 2x vault which utilises the sDAI pool from
Fig 12. Chart displaying targeted effective exposure range for USD0++ 5x vault which utilises the from Morpho
Fig 13. Chart displaying targeted effective exposure range for sDAI 11x vault which utilises the from Morpho
Fig 15. Chart displaying targeted effective exposure range for PT-cornLBTC-Dec24 8x vault which utilises the from ZeroLend
Fig 16. Chart displaying targeted effective exposure range for PT-eBTCDec24 8x vault which utilises the from ZeroLend
Fig 17. Chart displaying targeted effective exposure range for WETH/cbBTC-3x-long vault which utilises the Pool from Aave
Fig 18. Chart displaying targeted effective exposure range for PT-sUSDe-Mar-2025 7x vault which utilises the l from Morpho.
Fig 19. Chart displaying targeted effective exposure range for PT-sUSDe-May-2025 7x vault which utilises the
Morpho USDe/DAI 86% LLTV Pool
Morpho's USDe/DAI 91.5% LLTV Pool
Morpho's sUSDe/DAI 86% LLTV Pool
Morpho's sUSDe/DAI 91.5% LLTV Pool
Morpho's weETH/WETH 86% LLTV Pool
Spark Finance
Spark Finance
Spark Finance
Spark Finance
USD0++/USDC 86% LLTV Pool
sDAI/USDC 94.5% LLTV Pool
LBTC 90% LLTV Pool
eBTC 90% LLTV Pool
WETH/cbBTC 73% LLTV
PT-sUSDe/DAI 91.5% LLTV Poo
PT-sUSDe/DAI 91.5% LLTV Pool from Morpho.