Closed-market and gap risk

Closed markets create jump risk. No oracle can manufacture an executable weekend market.

Carry Health is intended to determine how much price movement a position is designed to survive before the next reliable trading session.

Illustrative example

A borrower posts $1,000,000 of RWA collateral and borrows $500,000. A 20% overnight gap reduces collateral value to $800,000, raising LTV to 62.5%. Whether the account remains safe depends on the configured maintenance and carry thresholds.

The purpose of carry margin is not to eliminate gaps. It is to limit how much leverage can be carried through periods when the protocol cannot reliably liquidate.