Min. Deposit

Even If the underlying asset price moves 18% from the current price, Set Min. Deposit so that the Margin is at least 2% of the debt.

The minimum value of LPT in case of borrowing is calculated as follows:

$$\begin{align*} &P_{min}=\sqrt{P_a*P_b}&\\ & f_2(x_a,y_a,LPT_{asset})_{min} = x_{a}(\sqrt{P_a}\sqrt{P_b})+L(\sqrt{P_a}-\sqrt{P_b})+y_a&\\ &where, L = \sqrt{xy}, P_a =1.0001^{lowerTick} , P_b=1.0001^{upperTick} &\\ \end{align*}$$

Apply the above equation to a 18% price change.

$$\begin{align*} &OptionVault_{value} = Asset - Debt + Margin&\\ &MinDeposit=0.02*Debt-f_2(x_a,y_a,LPT_{asset})_{min}+OptionVault_{value}&\\ \end{align*}$$