Prime

Prime is fixed term credit taken against a held asset under a protective floor. The primary economic cost of the structure is the upside above a chosen cap. There is no separate interest rate.

1. Post the asset you hold as collateral.
2. Review the terms: the amount, the floor, and the cap. Terms are indicative until execution and are priced by a counterparty.
3. The holder, or an approved delegate, authorizes from their own wallet. The collateral is committed under the executed terms for the term.
4. Repay by the deadline to release the collateral.

---

At settlement the floor limits the downside and the holder keeps the move up to the cap. Above the cap, the upside is exchanged with the counterparty. That exchanged upside is the primary economic cost of the structure.

Note

Protection property. No price based liquidation occurs during the protected term. On non repayment, liquidation opens permissionlessly after maturity plus four hours. This is a product property, not protection from every form of loss or settlement obligation.

---

A worked example, illustrative only. The values below are chosen to show the shape and are not live or operated figures. Post one unit of collateral, draw credit against it, and set a floor below and a cap above for the term.

Price at settlement	Outcome
Above the cap	Repay and release the collateral. The move above the cap is exchanged with the counterparty.
Between floor and cap	Repay and release the collateral, keeping the move up to the cap.
Below the floor	The floor applies at settlement under the executed terms. Repay to release the collateral, or let it settle.

The floor, the cap, and the cost were visible before signing.

---

Repay. Pay back the principal by the deadline; the collateral is released.

Non repayment. After maturity plus four hours, liquidation opens permissionlessly under the executed terms.