Safety and Buffer Variables

These parameters ensure Twyne triggers liquidations before the external protocol, protecting Credit LPs from losses.

Safety Buffer

Context	Notation	Description
Whitepaper	$\beta_{safe}$	Safety buffer below external liquidation
Litepaper	$\beta_{safe}$	Safety buffer below external liquidation
Solidity	externalLiqBuffer	Typically 0.95-0.99 (95%-99%)
Plain English	How much “breathing room” to maintain below external liquidation threshold

Dynamic Safety Buffer (coming soon)

Context	Notation	Description
Whitepaper	$\beta^{dyn}_{safe}$	User-specific dynamic safety buffer
Litepaper	Not covered	Advanced topic
Solidity	Not implemented	Adjusts based on user’s risk level
Plain English	An adaptive safety margin that increases for riskier positions	Currently NOT implemented in Solidity code

Formula: $\beta^{dyn}_{safe} = max(\rho, \beta_{safe})$ where $\rho = \tilde{\lambda}_t / \tilde{\lambda}^{max}_t$.