> For the complete documentation index, see [llms.txt](https://docs.predy.finance/predy-v5/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.predy.finance/predy-v5/core-of-v3.0/min.-deposit.md).

# 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\*}
$$