Secure Mode

Given that the PAYE model allows leveragoors to borrow assets without any costs and repay when closing their positions, there is a potential issue of prolonged 100% asset utilization. This situation may hinder lenders from withdrawing their funds as desired. To tackle this challenge, Stella has implemented a Secure Mode mechanism.

By triggering this mode, funds returned by leveragoors upon closing positions cannot be immediately borrowed for new positions for 2 days.

As a result, the mechanism ensures that lenders are guaranteed to access their funds in their entirety within a maximum period of 30 days. This measure provides increased confidence to lenders, assuring them of the prompt and complete withdrawal of their invested amounts.