Structured Risk

Split the Risk. Structure the Yield.

Structured Risk takes yield from any underlying asset and splits it into two tranches with different risk-return profiles.

Shielded or Amplified. You choose which side suits you.

• If you want protection against a potential drawdown, you can shield your APY.

• If you have conviction on the position, you can amplify your APY.

Shielded

Shielded is the senior tranche of the yield. It prioritizes capital protection in the event of losses, earning a lower but more stable return.

The mechanic is simple. You deposit a Yield Bearing Asset (YBA), like ONyc, and receive the shielded version of it: shONyc.

The shielded token accrues value as the underlying asset does. Generating yields for you. A cut of these yields is paid to Amplified (junior tranche) for their protection, with losses absorbed first.

The Coverage of Shielded varies based on the asset and market demand. Each vault has a coverage target, and APY adjusts automatically to attract the right balance of Shielded and Amplified deposits.

Amplified

Amplified is the junior tranche of the yield. It earns a higher yield, but absorbs any losses first.

The mechanic is simple. You deposit a Yield Bearing Asset (YBA), like ONyc, and receive the amplified version of it: amONyc.

The amplified token accrues value as the underlying asset does. Generating yields for you. A cut of shielded yields is paid to you for protection, thereby amplifying your returns.

Amplified absorbs losses first in a drawdown event. The higher yield comes with more risk.

How yields are determined

Neither tranche has a fixed rate. Both adjust dynamically based on two factors:

1. Coverage ratio — each vault has a target coverage, needing a balance between Amplified and Shielded TVL. Shielded has a cap on deposits based on this coverage and Amplified TVL.

2. Supply and demand — when one tranche is undersupplied, its yield rises to attract more capital. The protocol self-balances without manual intervention.

Example:

ONyc generating 10% APY, 100% coverage (equal TVL on both sides)

	Shielded	Amplified
APY	~7%	~13% (uncapped)
Performance fee	None	0.5% of spread
Net APY	~7%	~12.5%

If Amplified TVL doubles (200% coverage):

• Shielded cap rises → more attractive for conservative depositors • Amplified yield per unit dilutes → market rebalances naturally

Text	Shielded	Amplified
APY	~8%	~12% (uncapped)
Performance fee	None	0.5% of spread
Net APY	~8%	~11.5%

Fees

Lince takes 0.1% redemption fee on the amplified tranche (1% to make it instant) and a 0.5% performance fee of the amplified spread.

Start Splitting Risk

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