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Actualize
The Coverage Floor

Bitcoin can fall to zero. The coverage floor is built to stay above the line where the facility is at risk.

The position holds a Bitcoin reserve and a delta-neutral book together, and the facility is drawn against the whole. The delta-neutral book is the floor. It is sized so that its value alone keeps the facility within its limits — whatever Bitcoin does above it.

Facility coverage
Secured
Facility LTV
30%
Floor above liquidation
held
The coverage floor Collateral (with the reserve) Liquidation line Facility

The floor is sized so that, even if the reserve fell to nothing, the delta-neutral book alone would keep the facility above the liquidation line. It is coverage that a market move cannot take away.

Coverage is monitored continuously by The Continuum™, the autonomous agent ensemble that enforces the structure's limits. As the reserve appreciates, a measured portion is realised and returned to the floor, so the coverage deepens over time rather than drifting.

Illustrative. The chart shows a structural relationship between collateral, the coverage floor, and the facility; it is not a performance figure, a projection, a forecast, an offer, or a solicitation. © Actualize Finance Inc.