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Vault Solvency

We perform rigorous stress testing to ensure the Lemon LP Vault remains solvent even during periods of high volatility.

key protections

  1. Dynamic Spreads: Spreads widen during volatility to discourage toxic flow.
  2. Open Interest Caps: Limits on how much exposure the vault can take on a single asset.
  3. Max Drawdown: Circuit breakers that pause trading if the vault loses significant value rapidly.