Junior side

Lifecycle at a glance

Depositing

Approve the metavault to spend your underlying token, then make a junior deposit. The metavault wraps your assets, credits the junior side, and issues lcJUN at the current share price. Partial fills are fine — there's no entry price, no per-position cooldown, no NFT.

There is no leverage cap on junior deposits: more junior only lifts the cap that gates senior, so the system can absorb any amount of junior collateral.

Withdrawing

1. File a withdrawal notice. The notice records when it matures (now + 10 days) and transfers the noticed lcJUN into the metavault so it can't be moved while pending. Refiling stacks the amount and resets the timer.
2. Wait the notice window. Cancellable any time, which returns the queued shares to your wallet.
3. Execute the withdrawal once matured. You redeem at whatever the junior share price is at that moment — premium accrued and any losses absorbed are already in the price.

A 5 bps fee applies when a third-party keeper cranks your matured notice; self-execution is free. The fee exists so bots push matured notices through quickly, which stops anyone from sitting on a stale notice as a standing exit-on-demand against a future loss. See Fees.

Loss scenarios

Underlying losses hit junior before they touch senior. The table below shows minimum guaranteed coverage of 20% — i.e. senior is at the contract's 4× leverage cap and junior is at its structural floor (20% of total assets). Live coverage is typically deeper, because most vaults sit below the leverage cap and junior is therefore bigger than the floor.

There is no separate "haircut reserve" that gets returned later. The waterfall is applied directly; your lcJUN share price follows.

Where next

• Protection model: the loss waterfall in detail.
• Senior tranche: the other side of the trade.