Risk parameters

Every listed ticker belongs to an asset class. The class fixes the floor on the haircut and the ceiling on leverage; a per-ticker override may only be stricter, never looser, and the program rejects a listing that tries.

Two sources, conservative side

Collateral marks at min(pyth, twap) and debt marks at max(pyth, twap). A trader is never flattered by whichever source happens to be running hot, and the protocol always absorbs the disagreement. Out of hours the Pyth side of that pair is the last close rather than a live print, which makes the min a hard ceiling on collateral for the whole night.

A Pyth confidence band wider than 0.5% of the price widens the haircut linearly, capped at an extra 15%. Running on one live source instead of two costs a flat extra 2% — which is every hour outside the session, since Pyth is not live then by definition.

If the two sources disagree by more than 3% during regular hours, the ticker freezes: with the exchange open and both sources live, that is not noise, it is the xStock depegging from the underlying share. The same check cannot run overnight, because a wide gap between Friday’s close and Sunday’s token price is not a depeg — it is the weekend doing what weekends do, and freezing on it would freeze every night.

Out of hours the band widens to 8% and the consequence softens: past it the ticker goes close-only rather than frozen. A gap that size means one of the two numbers is wrong and it is not yet clear which, which is a good reason to stop new positions and a bad reason to trap existing ones — especially as the marks are already conservative in both directions. Nothing out of hours can freeze a feed while a live price still exists.

Liquidation

A position is liquidatable below a health factor of 1.0. A single call may repay at most half the debt. The penalty is 5%, split evenly between the liquidator and the insurance fund. Out of hours the flat penalty is replaced by a Dutch auction that starts at fair value and widens 0.25% every thirty seconds, to a hard ceiling of 15%.

$AXLE tiers

Staking lowers fees and raises the leverage ceiling. The thresholds are configurable on chain; the effects are fixed in the program, so a compromised admin cannot invent a zero-fee tier.